Payment and securities

settlement systems
development in the Euro area
reforms and trends
Nedyalko Nikolov #1423101

Contents
TARGET
TARGET2
SEPA

TARGET
Operating rules
-Started 1 Jan 1999
-RTGS system
-member states outside the euro area

TARGET
PARTICIPANTS
--treasury departments of central or regional governments of
member states active in money markets;
-public sector bodies of member states authorized to hold
accounts for customers;
-investment firms established in the EEA which are authorized
and supervised by a recognized competent authority; and
-organizations providing clearing or settlement services
subject to oversight by a competent authority.

TARGET
Types of transaction handled
-payments directly connected with central bank
operations in which the Eurosystem is involved
on either the recipient or the sender side;
-the settlement operations of large-value
netting systems operating in euros; and
-interbank and commercial payments in euros.

TARGET
Operation of the transfer system
Operating hours: 7 am - 6 pm
Closing days

TARGET
Transaction processing environment
Cross-border TARGET payments are processed via the
national RTGS systems and exchanged directly on a
bilateral basis between NCBs. All participants are
identified by a Bank Identifier Code (BIC) and are listed in
the TARGET Directory, which is available from SWIFT and
contains BICs worldwide.

TARGET2
Definition
TARGET2 is an interbank payment system for the real-time
processing of cross-border transfers throughout the European
Union. TARGET2 replaced TARGET (Trans-European Automated Realtime Gross Settlement Express Transfer System) in November 2007.

TARGET2
Migration to TARGET2
-The implementation of TARGET2 was based on a decision of the
ECB Council of Autumn 2002
-The Single Shared Platform
-Started operations on 19 November 2007

TARGET2
Transaction prices for TARGET2
There are two parallel schemes:
Recurring fixed charges and a fixed transaction fee
Monthly fixed charge: 100.00
Single transaction price: 0.80
Recurring fixed charge and a variable transaction fee based on
number of transactions
Monthly fixed charge: 1,250.00
Variable transaction price: volume-based between 0.60 and 0.125

TARGET2
Balances

SEPA

SEPA Single Euro Payments Are

The meaning of SEPA
Issue price
Initiative
Purpose
Benefits
Who will pay the price?
Creation of pan-European payment
instruments
The infrastructure for clearing an