2. TARGET2 presentation London, 3 January 2008 Bernard de Groes Bas Dekker

3. Agenda NL TARGET2 updateBernard de Groes Migration issuesBas Dekker

4. TARGET2 update Bernard de Groes NL

5. Public project plan NL GFS, UDFS T2 user guide

6. Testing NL Internal tests (3CB) Acceptance (CBs) 20072008 User testing activities (group 1) User testing activities (group 2) User testing activities (group 3)

7. Group 2 testing ESCB planning NL User testing activities Connectivity tests Interoperability tests (certification) Free testing Country testingBusiness day testing at institution levelat country levelat European level 19/06 17/0905/10 09/1101/02

8. Group 2 testing documentation NL USER TESTING GUIDE FOR MIGRATION Connectivity and interoperability test scenarios Test tool (T2TRIS) Operating hours test environment Responsibilities Credit Institutions and NCB Country and business day test scenarios: Migration weekend test Contingency procedures Connection with TARGET1 Ancillary system schedules

9. Group 2 testing documentation and registration NL Other Testing related documents: ICM User Handbook T2TRIS user guide Nat. Migration Profiles Ancillary System Profiles Registration TEST: SSP registration forms e-mssf SWIFT registration

10. Group 2 testing DNB planning NL User testing activities con nect Interoper tests (certification ) Free testing Country testingBusiness day testing at institution level at country level at European level 15/05 static data entry 19/06 06/07 connectivity test finished 17/0905/10 09/1101/02 15/08 interoper. test finished NL test 01/01 static data Entry in PROD 01/09-28/09 NL test scenarios 07/02 GO/NO GO 18/02 T2 LIVE

11. Group 2 Migration to PROD NL Registration: 15/10/07legal documents finalized e-mssf SWIFT registration submitted 01/01/08SSP registration forms PROD submitted (no copy of data from TEST) Migration: 07/02/08GO / NO-GO 15/02/0818:00 TOP close of day, no night-settlement 16/02/08migration of dynamic data 17/02/08verification of data in SSP 18/02/0807:00 opening TARGET2 NO FALL-BACK!

12. Planning 19 Nov 2007Group 1 live 18 Febr 2008Group 2 live 19 May 2008Group 3 live, start T2 pricing

13. Public project plan NL GFS, UDFS T2 user guide

14. Other Documentation NL SSP specifications –ICM User Handbookversion 2.3 –GFSversion 2.1 –UDFSversion 2.4 Operational procedures –T2 user guide –T2 user guide for migration –T2 Guideline

15. Questions?

16. Migration issues Bas Dekker NL

17. Migration TARGET2 is one of the most demanding changes in the European financial sector => A lot of projects must be synchronised Individual migration-CB, CI, AS National migration-CB SSP-3CB ESCB wide migration-ESCB+3CB

18. Migration scenario No European wide Big Bang … Not all participating countries and their banking communities should change together in one single day! Conclusion: Interlinking for migration purposes only Pilot group Country windows

19. Migration scenario … but a Country Big Bang Not feasible to connect one country with two RTGS components One major possible exception to Country Big Bang: Settlement of ancillary systems might be transferred to the SSP at a later stage This implies the use of the local system (home accounting) for this transition period

20. TARGET2 Migration Smooth transition from the current TARGET to the new TARGET2 system for all involved players (CBs, CIs, ASs) Co-ordination of all implementation activities after the development of the system, meaning testing plus changeover until all participating CBs have moved to the SSP Steering and monitoring the implementation process

21. TARGET2 migration To ensure a smooth migration from TARGET1 to TARGET2 for all involved players How Migration strategy following a phased approach Central banks migrating together with their banking community Four migration groups (one reserved for contingency) –19 November 2007 –18 February 2008 –19 May 2008 –15 September 2008

22. Group composition aimed at minimising project risk, reducing effect on level playing field and limiting the costs for central banks and users Group 1 Group 2 Group 3 Group 4 Austria Belgium Denmark Germany Finland Estonia Lithuania France ECB Reserved Luxembourg Ireland Greece for Slovenia NetherlandsItaly contingency Portugal Poland Spain Cyprus Malta Latvia Migration group allocation

23. National Migration Profile Objectives: –Information to users –Basis to monitor and steer the migration Content –Country migration model National Big Bang No compulsion, no prohibition –Usage of optional modules selected by a CB –Migration group

24. Available for all countries. Contact information and general presentation of the Central Bank’s project. Settlement modes for ancillary systems. Requirements for settling specific operations (reserve holding, standing facilities, cash operations…). National specificities. National Migration Profile

25. Final Migration strategy will be developed following a top-down approach Strategy documents will cover: –Testing –Roles & Responsibilities –Communication –Organisation of changeover –Operational framework Migration Strategy

26. Tasks & Responsibilities

27. Dutch implementation strategy National Big Bang –Conversion on Saturday –Ascertain successful migration all accountholders Decision to migrate some weeks in advance

28. Preparation Before 7 December 2007: SSP forms with activation date 18 February E-Ordering CUG with implementation date 2 February 2008 Between 18 January and 1 February 2008: BKE with : –TRGTXEPM (for direct participants) or –TRGTXEHM (for co-managers or HAM accountholders)

29. Migration weekend February 18, 2008 & Test weekend Migration December 8, 2007 NL

30. PURPOSE One central communication plan for February 18, 2008. Each participant should provide their milestones (based on their migration plan) to DNB. Agreement on the way of communication between participants and DNB. To provide a short plan for the test weekend of December 8 and to complete the final version of February 18 with the experiences of testing NL

31. CURRENT AGREEMENTS Per participant one main contact person and one back up (December 8 and February 18) DNB will send out her current generic milestones All participants can send their milestones to DNB DNB will create one overall plan NL

32. CLARIFICATION OF DECEMBER 8 Testing is December 8 from 08.00 – 16.00 Participants have to communicate contact persons, phone numbers and e-mail addresses TOP will be closed and balances of participants will be transferred to SSP Credit facility will be available Check(s) if all amounts are correct NL

33. ADDITIONAL ITEMS Communication from DNB to participants via e-mail Feedback of checks by participants by phone At the end of migration one email will be send to DNB to confirm everything went well A short version of the plan will be written for testing as well After testing a meeting will be organized to discuss the experiences NL

34. Milestones (1) 04-02-08 / 15-02-08: Connect to ICM and check Static Data 08-02-08: Interim version of T2 directory available 11-02-08 / 15-02-08: Participant send a live payment to themselves (this one will be rejected since account is not active) Enter standing order bilateral/multilateral limits Enter standing order highly urgent/urgent reservations

35. Milestones (2) 13-02-08: Deadline for corrections in T2 directory 15-02-08: Final version T2 directory available Standing order liquidity transfers between RTGS and sub/mirror account (if applicable)

36. Milestones (3) 16-02-08: Migration TOP to TARGET2 17-02-08: Extended Migration possibility 18-02-08: From 05:00 - 06:00 exchange of one euro payments between Direct Participants Before 06:15 Direct Particpants inform DNB about the results of the one euro payment. 07:00 TARGET2 (migration group 2) going live. 18-02-08 – 22-02-08: TOPView available for inquiry

37. Be prepared NL It is your responsibility to be ready in time!

38. Questions?

39. Lunch! NL

40. Customer Information about TARGET2 General Functional Specifications Only for central banks General concept of the Single Shared Platform „Order book“ for the three central banks developing the Single Shared Platform Current version 2.1, published July 2007

41. For Central banks only Customer Information about TARGET2 User Detailed Functional Specifications Detailed description of the Single Shared Platform's features  Operational  Technical Basis for preparing participation in the Single Shared Platform Current version 2.4, published November 2007

42. Customer Information about TARGET2 User Detailed Functional Specifications Book 1 - Core Services Book 2- Optional Services Book 3- For Central Banks only Book 4- XML-specifications ICM Book 1- User guide ICM ICM Book 2- For Central Banks only

43. Communication DNB Information sessions TARGET2 newsletters TARGET2 websites Email address (target2@dnb.nl) Bilateral meetings TARGET2 Bank Co-ordination Group (T2- BCG) TARGET User Group NL

44. TARGET2 websites ECB-website Address: https://target2.ecb.int/ User: t2user Password:VBjmspRR7 DNB-website Address: http://www.dnb.nl Payments / Non cash-payments / TARGET2 NL

45. DNB website ESCB documents –General Functional Specifications –User Detailed Functional Specifications –ICM User Handbook –Schema Files for XML-messages –National Migration Profiles –Ancillary Systems Profiles –Progress Reports DNB documents –Analysis of the consequences of the migration –Presentations –TARGET2 Newsletters –Frequently Asked Questions NL