TARGET2

The Eurosystem has launched a TARGET consolidation project with a view to replacing TARGET2 with a new, modern and secure real-time gross settlement system in March 2023. The new TARGET system will offer its participants optimised liquidity management capabilities, ensure a single connection to the Eurosystem's market infrastructures and the transition to ISO20022 standard messages. TARGET system will ensure settlement of transactions on:

1. T2 dedicated cash accounts – for bank-to-bank and commercial payments as well as transactions with the central bank;
2. TARGET2-Securities dedicated cash accounts – for settlement of securities transactions on the TARGET2-Securities platform;
3. TIPS dedicated cash accounts –  for settlement on the Eurosystem's instant payments platform.

Updated on 13 December 2022

Ancillary systems

TARGET2 is based on a single technical platform while legally the system is structured as a multiplicity of real-time gross settlement payment systems. Each component system is operated by one of the Eurosystem's central banks or a TARGET2 participating central bank of non-euro area EU member state.

TARGET2 technical documentation is available on ECB website.

Current version of TARGET2 technical documentation (in force as of November 2021) 

Terms and conditions for participation in TARGET2-Latvija are stipulated in "Participation Procedure in TARGET2-Latvija" approved by the Council of Latvijas Banka and implementing the Guideline of the European Central Bank, of 5 December 2012, on a Trans-European Automated Real-time Gross settlement Express Transfer system (ECB/2012/27; 2013/47/EU).  

Participation Procedure in TARGET2-Latvija system (available only in Latvian)
Static Data forms
Reference and Static Data Registration User Guide
TARGET2 compensation scheme – claim form

On 6 July 2017 the Financial Stability Board (FSB) published its Guidance on Continuity of Access to Financial Market Infrastructures (FMIs) for a Firm in Resolution, according to which providers of critical FMI services should take appropriate steps to consider and plan for the interaction between the resolution regimes of their FMI service users and their own risk management framework; thereby clarifying the actions they may take in a resolution scenario, to support firms and authorities in enhancing resolution readiness. Since then, the TARGET2 operator has taken measures to reflect the FSB Guidance in the relevant TARGET2 legal and operational documentation.

On 14 August 2020, the FSB published a common template for gathering information about continuity of access to FMIs for firms in resolution with the objective to streamline the provision of information from FMIs to firms and authorities and to reduce the number of inquiries from banks and authorities to FMIs. The template takes the form of a questionnaire that all FMIs are encouraged to complete.

The Eurosystem as the operator of TARGET2 supports this initiative of the FSB.  The national central banks (NCBs) as the operators of their TARGET2 component system publish the responses to all those questions that can be answered for TARGET2 as a whole (this does primarily cover all those aspects that are regulated in the TARGET2 Guideline and explains the general approach of the TARGET2 operator towards TARGET2 participants in resolution), as well as those answers that primarily concern domestically defined rules and procedures for the interaction between Latvijas Banka and a TARGET2-Latvija participant in resolution.

Participants in TARGET2-Latvija component system are invited to contact Payment Systems Department of Latvijas Banka in case of questions related to the general approach or to the responses for TARGET2.

FSB Questionnaire on Access to FMIs