TARGET Services: T2, T2S and TIPS

What You Can Do After This Chapter

Learning objective. Learner explains TARGET Services, distinguishes T2, T2S and TIPS, and describes the MCA, ESMIG access, and multi currency operation after TARGET2 closed on 20 March 2023. Learner uses real amounts, banks and message names to show how the services work in practice.

Practical assessment. Learner receives a case where a bank in Frankfurt must move EUR 40,000,000 of liquidity between its RTGS DCA and its MCA, open a TIPS DCA, and explain how T2S settles a EUR 5,000,000 securities trade, then drafts the account map, the liquidity transfer steps, and a one page note on when each TARGET service is used. Learner also explains the ESMIG access route and the multi currency scope in the same note.

Expected deliverables.

• TARGET account map: MCA, RTGS DCA, TIPS DCA and CLM
• Liquidity transfer worked example for EUR 40,000,000
• One page note: when to use T2, T2S and TIPS
• Comparison table: RTGS, CLM, T2S and TIPS

Completion criterion. Learner produces a correct TARGET account map with MCA, RTGS DCA and TIPS DCA, explains each service clearly, and drafts accurate liquidity transfer steps. and the liquidity steps are complete and accurate.