Payment systems

CCBM2

On 8 March 2007, the Governing Council decided to review the Eurosystem collateral management handling procedure, in particular, the Correspondent Central Banking Model - Correspondent Central Banking Model (CCBM)- and launch the CCBM2 project ( Collateral Central Bank Management ). It basically aims to address some of the drawbacks of the CCBM (mainly the non-homogeneous degree of automation between the central banks, the lack of standardisation and harmonisation between domestic and cross-border procedures), which will serve to increase the efficiency of collateral management in the Eurosystem, enhance liquidity management and harmonise the level of service.
CCBM2 is a common IT platform for the management of collateral used for Eurosystem credit operations, in which the national central banks will participate voluntarily. CCBM2 will be used for all Eurosystem eligible collateral (securities and non-marketable debt instruments), at domestic and cross-border levels. It will also cover the use of different collaterisation techniques (credit facilities and repurchase transactions, both pooled pooling or earmarked earmarking ), depending on the practices of each national central bank. CCBM2 will be able to take collateral through all the Securities Settlement Systems (SSSs) and the related linkages eligible for use in Eurosystem credit operations.

On 17July 2008, the Governing Council approved the platform's “User Requirements” which were published and are serving as the basis for drawing up the functional specifications of CCBM2 ( User Detailed Functional Specification –UDFS-), expected to be released shortly.

CCBM2, as a Eurosystem collateral management platform, will interact with two large infrastructures: Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET2) for large-value payments and TARGET2-Securities for securities settlement, forming a “settlement management triangle”. Hence, the CCBM2 deems "eligible" the collateral for use in Eurosystem credit operations and calculates its value; TARGET2-Securities will provide delivery of securities; while TARGET2 deals with the final provision of liquidity and maintenance of lending facilities.