Prepare for big-bang, systemic changes to Europe's payments infrastructures
In July 2020, the European Central Bank (ECB) announced that the project timeline to consolidate TARGET2 (T2) and TARGET2-Securities (T2S) would be extended by one year following discussions with the European financial community.
With major changes coming to both T2 and EURO1, financial institutions that route payments through Europe are facing a series of important milestones:
- selecting their network service provider for TARGET Services by the end of June 2021
- planning their transition to the new operating processes
- migrating messaging standards to ISO 20002
- creating an effective testing strategy for their payments business
SWIFT has been appointed as a Network Service Provider for access to all Eurosystem services and has passed all of the necessary compliance checks.
We are committed to providing users with a single window for full connectivity to the European Single Market Infrastructure Gateway (ESMIG) and more than 235 market infrastructures worldwide, as well as to cross-border SWIFT gpi payments.
We have also developed a suite of tools and services to make your TARGET consolidation and EURO1 projects a success. Our industry experts are available to advise and guide you with impact assessments, training, project management, and technical and standards-related expertise.
As part of its Vision 2020 strategy, the Eurosystem is modernising and consolidating its market infrastructures. TARGET2 and T2S will be consolidated, and TARGET2 will be replaced with a new real-time gross settlement (RTGS) and Central Liquidity Management (CLM) system using ISO 20022.
The EURO1 high value payment system will also migrate to ISO 20022 in the same timeframe as TARGET2.
ISO 20022 cross-border
The migration to ISO 20022 for cross-border payments and cash reporting messages is set to start at the end of 2022. The migration will change the way banks exchange cross-border payment instructions and reports.
Why choose SWIFT for your European MI projects?
Reuse established technology footprint in IT back-office and operations front-office Reuse messaging protocols for market infrastructures in Europe and worldwide Multiple levels of resiliency for Application to Application (A2A) and User to Application (U2A) Strong track record of operational excellence
SWIFT is the registration authority for ISO 20022 The migration is orchestrated by the SWIFT community SWIFT maintains standards in regional and global working groups
Keep an end-to-end view on payment transactions across market infrastructures and correspondent banking Track payment transit times and fees via the gpi tracker Use SWIFT’s value added services (validation, translation, integration and testing) to support your projects end-to-end
SWIFT is a cooperative, owned and governed by its customers Member groups, user groups and industry working groups as part of governance Industry platform Committed to delivering common solutions to common challenges