On Jun. 18, ECB issued update on messages and roles in the ECMS.
In November 2023 the Eurosystem Collateral Management System (ECMS) will replace the existing collateral management systems used in Eurosystem credit operations.
Follows ECB Oct. 2020 announced decision to reschedule the launch, see #36720.
ECMS
Unified system for managing assets used as collateral in Eurosystem credit operations.
Its launch is planned for November 2023; together with other TARGET Services that the Eurosystem offers, ECMS will ensure that cash, securities and collateral flow freely.
It will be made available through the Eurosystem single market infrastructure gateway.
Messages and Roles
Counterparties will access and use the ECMS and all other TARGET services through the Eurosystem single market infrastructure gateway (ESMIG).
With ESMIG, counterparties can interact with the ECMS in user-to-application (U2A) and/or application-to-application (A2A) mode via ISO 20022 messages.
Central banks, CSDs and triparty agents will only interact with the ECMS in A2A mode.
To support ECMS actors in their preparations for the system’s launch, information on messages and predefined roles in the ECMS has been uploaded on the ECB’s website.
Told participants to watch this space for more details on the ECMS in coming weeks.
Dec. 2022 Launch Rescheduled
On Dec. 2, 2022, ECB announced Eurosystem rescheduled launch of new collateral management system (ECMS) from Nov. 20, 2023 to Apr. 8, 2024.
Decision taken to mitigate impact of rescheduled launch of T2, Eurosystem’s new real-time gross settlement system and central liquidity management model.
The latter was postponed by 4 months on Oct. 20, 2022; ECMS will be a unified system for managing assets used as collateral in Eurosystem credit operations.
It will replace existing individual systems of euro area national central banks;
ECMS expected to deliver considerable benefits to Eurosystem, counterparties, market by harmonizing collateral management practices, contribute to further EU integration.
Nov. 2023 New ECMS Launch Date
On Nov. 30, 2023, ECB announced the launch of a Eurosystem Collateral Management System (ECMS) had now been rescheduled again, from Apr. 8, 2024 to Nov. 18, 2024.
The decision, taken by the Governing Council of the ECB, follows an assessment by the ECB’s Market Infrastructure Board, which found that users need more time to complete testing of the ECMS functionalities within a stable environment, before a go live date.
Additional time will ensure system stability and user readiness, and smooth migration. The Eurosystem will continue to support users through the testing execution phase to ensure sufficient progress is made and all milestones are reached in time for launch.
The ECMS is a unified system for managing collateral assets in the Eurosystem credit operations, to replace existing individual systems of euro-area national central banks.
The ECMS is expected to deliver benefits to Eurosystem, counterparties and the wider market by harmonizing collateral management practices, contributing to integration.
Aug. 2024 Harmonization Rules
On Aug. 14, 2024, ECB announced the new harmonization rules will take effect with the Eurosystem Collateral Management System (ECMS), scheduled for Nov. 18, 2024.
Step towards further financial integration in the euro area and capital markets union.
The new rules and arrangements can be found in the guideline on the management of collateral in Eurosystem credit operations (ECB/2024/22), which ECB issued same day.
Further info for Eurosystem counterparties on harmonized processes, procedures and arrangements in the management of collateral in Eurosystem credit operations.
General documentation has been amended to take account of guideline ECB/2024/22.
Harmonized rules and arrangements and amendments to the general documentation will come into effect with the launch of ECMS, which is planned for Nov. 18, 2024.
ECMS is a unified system for managing assets mobilised as collateral in Eurosystem credit operations and it will replace the existing individual collateral management systems belonging to the national central banks of the euro area countries.
Sep. 2024 Launch Rescheduled
On Sep. 25, 2024, ECB reported Governing Council decided to reschedule launch of its new ECMS to first half of 2025; exact launch date to be communicated in Oct. 2024.
Decision taken in light of an assessment conducted by the ECB Market Infrastructure Board (MIB), which concluded additional time required to achieve sufficient readiness for a smooth go-live, despite good progress made in the summer testing phase.
Rescheduling will support national central banks of the euro area and counterparties that will be joining the ECMS by enabling them to achieve sufficient testing coverage in a stable environment to ensure their readiness by the revised go-live date.
The ECMS will allow counterparties to manage assets used as collateral in Eurosystem credit operations; it is closely linked to the TARGET2-Securities (T2S) platform for the settlement of securities and to the T2 system for the transfer of central bank liquidity.
