The new European Instant Payment Settlement

Transcription

1 The new European Instant Payment Settlement

2 The new European Instant Payment Settlement: an overview What & When Tips The European Central Bank is developing a new service, called TIPS. Thanks to such system, the s for C2C, C2B and B2B payments, will be processed within a few seconds anywhere in Europe. Therefore, by the end of 2018, the delays and the time constraints associated to the electronic payments will be eliminated. The TARGET instant payment settlement (TIPS) service will enable payment service providers (PSPs) to offer fund transfers in real time and around the clock, 365 days a year. Start of investigation phase July 17 End of realisation phase July 16 Nov 18 End of investigation phase Feb 18 Start of realisation phase Go live Who End User Any PSP which has the requisites to open an account in TARGET2 Network Provider (NSP) Instructing party Any entity that can issue instructions in TIPS on behalf of a participant or reachable party Contractual Agreements Reachable party Any PSP that settle instant payments on a participant s account in TIPS

3 Why Target 2 Same participation requirements as for TARGET2 Instant payments settlement in Central Bank Money 24/7/365 operating hours Operated on a full cost recovery basis SCT Inst paradigm supported Multi-currency technical capability How Tips Actors can access TIPS via different Network Providers through the Eurosystem Single Market, Infrastructure Gateway component via U2A (User to Application) or A2A (Application to Application) mode 2 validates and makes reservation 1 Sends 3 Forwards Instant payment originator 6 confirms settles Tips Accept confirms Instant payment beneficiary

4 TIPS milestones and deliverables What to action now Today Understand TIPS initiative matches the Eurosystem s objectives of promoting innovation and fostering integration within the euro area. Analyse The roll-out of instant payments depends not only on the payment service providers, but also on the availability of a safe and efficient underlying market infrastructure that can process instant payments across Europe. Initiate SEPA credit transfer Originat Debit account Originat or bank What to action in the coming weeks Clearing and Settlement Interbank messages Beneficiary Credit account Beneficiary bank Focus By providing TIPS, the Eurosystem will make sure that the demand for instant payments is met at European level and will further facilitate integration in the euro area. Develop In the euro area, the first countries to launch instant payment initiatives were Italy, Spain and the Netherlands. What to action in the coming months Update Instant payment solutions have been implemented, or are in the process of being developed, in many countries across the world. Target TIPS will offer final and irrevocable settlement for instant payments in central bank money on a 24/7/365 basis. It will allow participating banks to set aside part of their liquidity on a dedicated account opened with their central bank, from which instant payments could be settled around the clock. The balance on these accounts will count towards their required minimum reserve. Instant settlement will eliminate credit risk for all involved participants. 2 validates and makes reservation 1 Sends 3 Forwards Instant payment originator 6 confirms Tips settles Accept confirms Tomorrow Instant payment beneficiary

5 Connectivity Guide v1.0 FINAL Connectivity Technical Requirements v1.0 User Detailed Functional Specifications v.1.0 User Handbook v.1.0 Next steps On 08 th December 2017, the final version of the Connectivity Guide was released. The aim of the Connectivity Guide is to provide the TIPS Actors with the relevant guidelines for establishing a technical connection to TIPS. Basically this document describes the process to register to TIPS and to select a Network Provider (NSP). On 08 th January 2018, the latest version of the Connectivity Technical Requirements paper was released. The general architecture of the TIPS Platform is set out in the High Level Technical Design document. The document describes the platform and defines very high-level requirements for the Connectivity s required for the remote access to the TIPS Platform. The final version of the User Detailed Functional Specifications is expected by 16 th March This document describes all the features of the TIPS service and TIPS Actors interactions with it, focusing on application-to-application communication. The final version of the User Handbook is expected by 30 th April The UHB aims at facilitating the use of the Graphical User Interface (GUI) of TIPS. It is intended for any TIPS user regardless of the focus of activities and describes the full range of functionalities available in user-toapplication (U2A) mode in order to provide the authorised users with the possibility to query al data 24/7/365. May June 2018: Start of Eurosystem internal system testing. August September 2018: Start of pilot testing involving users. November 2018: TIPS is scheduled to commence GO-LIVE!

6 Why PwC Our main Italian Customers concerning the Securities & Post Trade s INTESA SANPAOLO State Street NEXI CartaSì ICBPI CARIPARMA CRÉDIT AGRICOLE Participation to events and forum Participation to ECB post-trade and payment forums Participation to DCP forum T2S Moderator & panelist to the events organized by entities belonging to the category (ABI and Assosim) PwC Support to international players Support to national and international players about compliance projects and feasibility studies Strategic and technological partner of the T2S project for italian and foreign ICP Support to regulatory change projects BANCO BPM Banca Akros Gruppo CREDEM SOCIETE GENERALE RBC International coordination network Generation of a new working team which involves the global and the european PwC networks and which is focused on the market analysis and the sharing of experiences and solutions Training and awareness Training to professional players and financial institutions Surveys development in collaboration with other organizations of the same category SECSERVIZI Cassa Centrale Banca BNY MELLON BNP PARIBAS Target 2 Securities L opportunità di un sistema di regolamento europeo senza confini The 300-billion-euro Question Survey on the Benefits of TARGET2-Securities Post-trade services in financial markets Moving from backstage to center stage Economic analysis of SEPA Benefits and oppotunities ready to be unlocked by stakeholders FS viewpoint A survey of financial institution preparedness Capital Markets 2020 Will it change for good?

7 Contacts Mauro Panebianco Partner AWM Consulting Leader Andrea Laurenti Director

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