A system to unify collateral management for 20 European central banks will launch next month.
A system intended to unify collateral management systems for 20 Euro area national central banks has just gotten the green light from a key group within the European Central Bank (ECB). It is slated to go live by mid-June.
The Governing Council of the ECB “has confirmed that the new Eurosystem Collateral Management System (ECMS) will go live on 16 June 2025. This follows a positive assessment conducted by the Market Infrastructure Board of the ECB,” officials say.
“The ECMS is a unified system that will harmonize collateral management for Eurosystem credit operations, replacing the systems currently used by the 20 euro area national central banks,” according to the ECB.
The ECMS encompasses the flow of cash, securities, and collateral across Europe in an attempt to improve liquidity management for the Transeuropean Automated Real-time Gross-settlement Express Transfer, or TARGET, Services. “TARGET Services are those services developed and operated by the Eurosystem, which ensure the free flow of cash, securities, and collateral across Europe,” according to the ECB. The T2S service, for instance, is for settling securities.
“The national central banks of the euro area and their counterparties stand ready for the launch of the ECMS following extensive testing of the system in a stable environment. After migration is completed over the weekend, ECMS operations are expected to start on Monday, 16 June at 07:00 CET,” ECB officials say.
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