The European Central Bank (ECB) has published a TARGET2-Securities (T2S) guide for payment banks.

A payment bank is described in the context of T2S as an entity that provides cash to central security depository participants to support the settlement of securities.

The guide provides information about the required set up and operations by a payment bank to service their clients. It also provides details about liquidity management and monitoring tools including auto-collateralisation available to payment banks in T2S. Furthermore, it provides several examples to explain possible scenarios related to payment banks in T2S on various topics including static data set-up, account structure, liquidity management, liquidity monitoring and auto-collateralisation.

The ECB has also published two further guides:

  • Insights in message subscription and routing configuration. Message subscription is a rules-based configuration to specify the business elements which T2S uses to identify the outgoing messages to be sent to the relevant T2S actor. The guide explains the concepts of message subscription and routing configuration in T2S; and
  • Insights into T2S linking. T2S linking is the functionality to link settlement instructions and/or settlement restrictions together. The guide explains the concept of linking in T2S and describes principles and rules of T2S linking.

View T2S Guide for payment banks, 28 March 2014

View Insights in message subscription and routing configuration, 28 March 2014

View Insights into T2S linking, 28 March 2014