European MI projects - Single Market Infrastructure Gateway (ESMIG)
Key Milestones ESMIG
Select your NSP
Participants must select their network service provider for TARGET Services by the end of March 2020
They must plan their transition to the new operating processes
They will have to migrate their messaging standards to ISO 20022 by November 2021
They will have to create an effective testing strategy for their payments business
What are the changes in the Eurosystem?
The Eurosystem’s TARGET Services include TARGET2 (the real-time gross settlement (RTGS) system for settling payments), T2S (the securities settlement platform) and TIPS (the service for instant payments settlement). All of them settle in central bank money.
TARGET consolidation is a project launched by the Eurosystem to consolidate TARGET2 and T2S, in terms of both technical and functional aspects. The objective is to meet changing market demands by replacing TARGET2 with a new real-time gross settlement (RTGS) system and optimising liquidity management across all TARGET Services. The new RTGS system will offer the market enhanced and modernised services. TARGET2 will migrate to ISO 20022 messaging (T2S and TIPS already use ISO 20022 messages).
This will be a “big bang” migration, scheduled for November 2021. The new consolidated platform will be launched at the same time.
The Eurosystem will introduce a number of other components that will be shared across all TARGET Services:
A harmonised interface – the Eurosystem single market infrastructure gateway (ESMIG) – will make it easier for participants to access and use the Eurosystem's services from a single entry point.
Common reference data will reduce the effort required to create and maintain multiple copies of reference data and will centralise the management of user access rights.
A common data warehouse will make it possible for participants to access historic information.
A common billing system will help the Eurosystem optimise its operational costs.
Barrel Wave Solutions's Offer
Barrel Wave Solutions has included to its offer the TARGET services and products developed by SWIFT.
Our customers will benefit from the connection facilities offered by the bank messaging application: Alliance Messaging Hub (AMH).
AMH provides TARGET services (T2, T2S, TIPS) through ESMIG via connectors integrated. In addition, AMH also has the XML converter for TARGET-specific libraries integrated.
Through SWIFT, financial institutions will have two ways of connecting, depending on the status of the participant (Direct or Indirect) :
A2A - Application to Application (integrated solutions)
For Direct Participants, this connection allows you to directly and automatically manage the transactions on your account at the central bank by message (InterAct) and/or file (FileAct).
U2A - User to Application (Solutions via Web Access/Browse)
For Indirect Participants, this connection provides access to the ESMIG portal to manage the configuration of its environment and manually enter its transactions.
Barrel Wave Solutions can offer both solutions to its customers.