1. Interconnection with T2S
TARGET2
Interconnection with T2S

2. Overview The need to adapt TARGET2 to T2S System to system connection
Mandatory amendments to core services
Value added services
Interactions between the banks and TARGET2 / T2S

3. TARGET2 adaptations to T2S The need to adapt TARGET2 to T2S
The intensive discussions between the Eurosystem, the 3CB and the banks lead to the following conclusion:
The connection of T2S to TARGET2 will be considered and built as a new interface specially designed for T2S
The same technical interface (with the same message standard) should be used for the management of both T2 cash accounts and T2S Dedicated Cash Accounts
There is a need of monitoring and consolidating liquidity posted in T2 accounts and T2S Dedicated Cash Accounts in real time
Shifts of liquidity (Liquidity Transfers – LT) in both directions (from T2 to T2S and T2S to T2) to be made available
Data consistency between both systems to be ensured (i.e. for reference data)

4. Overview The need to adapt TARGET2 to T2S System to system connection
Mandatory amendments to core services
Value added services
Interactions between the banks and TARGET2 / T2S

5. TARGET2 adaptations to T2S System to system connection
Use of ISO compliant standard including Business Application Header
Creation of a dedicated T2S interface in TARGET2
Management of liquidity transfers in both directions T 2 S I
RTGS
RTGS
DCA
Securities
ISO 20022
RTGS
DCA
Securities

6. Overview The need to adapt TARGET2 to T2S System to system connection
Mandatory amendments to core services
Value added services
Interactions between the banks and TARGET2 / T2S

7. TARGET2 adaptations to T2S Mandatory amendments to core services
Implementation of camt5 (without Business Application Header)
(camt5 is the only valid standard for T2S related A2A customer interaction in T2)
Development of new messages (in addition to proprietary messages)
In release 5.0 (Nov 2011)
In release 7.0 (Nov 2013)
CAMT 3
CAMT 3
Only for
non-T2S related business
CAMT 4
CAMT 4
CAMT 5
For T2S and non-T2S related business 7

8. TARGET2 adaptations to T2S Mandatory amendments to core services
Event-oriented standing orders for liquidity transfers from TARGET2 to T2S (setting up via U2A and A2A)
Optional debit notifications in MX (camt.054)
Credit notifications in MX (camt.050)
Current order for liquidity transfers from TARGET2 to T2S via U2A or A2A (camt. 050)
Bank
Standing/current order liquidity transfer
(U2A or A2A camt5)
Credit notifications
optional debit notifications (camt5)
RTGS
RTGS
DCA
Securities
ISO 20022
RTGS
RTGS
DCA
Securities

9. Overview The need to adapt TARGET2 to T2S System to system connection
Mandatory amendments to core services
Value added services
Interactions between the banks and TARGET2 / T2S

10. TARGET2 adaptations to T2S Value added services
Some TARGET2 participants may not be ready by the time T2S goes live to properly interact with T2S
Several optional services are proposed by the Eurosystem
to manage their cash across TARGET2 and T2S
But
These optional services will be developed only if TARGET2 participants confirm their needs on the basis of the pricing that will be decided. A tentative pricing will be announced towards the end of the year. 10

11. TARGET2 adaptations to T2S Value added services
Intraday balance of DCA (=> cash integration) in U2A / A2A (camt.003)
Liquidity transfers from TARGET2 to T2S via MT202
Liquidity transfer from T2S to TARGET2 via MT202, U2A or A2A (camt.050)
Credit notifications via MT202 and optional debit notifications via MT900
DCA end of day statements (MT940/MT950 or camt.053 without BAH)
Access to T2S GUI via the ICM (to be confirmed)
Bank
Liquidity transfer (MT202)
Liquidity transfer (U2A/A2A camt5)
Access to T2S GUI via the ICM
DCA intraday balance (U2A/A2A camt5)
Optional debit notifications (MT900)
Credit notifications (MT202)
DCA end of day statement (MT940/MT950 or camt5 without BAH)
RTGS
RTGS
DCA
Securities
ISO 20022
RTGS
RTGS
DCA
Securities
Cash related information flows

12. Overview The need to adapt TARGET2 to T2S System to system connection
Mandatory amendments to core services
Value added services
Interactions between the banks and TARGET2 / T2S

13. TARGET2 adaptations to T2S Interactions between the banks and TARGET2 / T2S
Eurosystem’s offer for TARGET2 (cash side)
ISO20022 compliant interface
Access to RTGS related features via TARGET2 using a new ISO20022 compliant interface.
Access to DCA related features via the regular T2S ISO20022 compliant interface.
Standard offer
Legacy
standards
Conversion by TARGET2
ISO20022
Central
Bank
Money
DCA
RTGS
Converted by TARGET2
Optional offer
Access to the main DCA features via TARGET2:
Intraday balance on the DCA
Liquidity shift (push and pull)
End of day statement for the DCA
Eased access to the T2S GUI for other features
Alternative interface (legacy standards)

14. TARGET2 adaptations to T2S Interactions between the banks and TARGET2 / T2S
CSD
ISO
ISO
U2A/camt5/MT
RTGS
RTGS
DCA
Securities
ISO
RTGS
RTGS
DCA
Securities
Securities related information flows
Cash related information flows