TARGET Ecosystem Overview
TARGETACTIVEOperator: Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
Overseer: European Central Bank (ECB)
Legal basis: ECB Guideline on TARGET (ECB/2022/8), Treaty on the Functioning of the EU (Art. 127)
Launched: Mar 20, 2023
Quick reference: View technical card →
Executive Summary
TARGET is the Eurosystem's unified platform for large-value payments, securities settlement, instant payments, and collateral management. Launched in March 2023, it consolidated four previously separate services — T2 (RTGS), T2S (securities), TIPS (instant payments), and ECMS (collateral management) — onto a single technical platform. This consolidation was the largest payments infrastructure migration in European history, replacing the previous TARGET2 system that had operated since 2007.
How It Works
Settlement Model
Multi-service platform: RTGS (T2), DVP settlement (T2S), Instant settlement (TIPS), Collateral management (ECMS)
Message Standard
ISO 20022 (full migration completed with March 2023 consolidation)
Max Transaction
No limit (T2 RTGS)
Clearing Mechanism
Direct settlement in central bank money — no external clearing layer needed for RTGS
Settlement Cycle
T2 RTGS: weekdays 02:30–18:00 CET (night-time settlement from 19:30). TIPS: 24/7/365. T2S: overnight batch + real-time DVP during day. ECMS: aligned with T2 operating hours.
Message Flow
The TARGET platform provides a single access gateway (ESMIG) for participants to reach all four services. Liquidity is managed centrally — a participant's Main Cash Account (MCA) in T2 feeds dedicated cash accounts for TIPS, T2S, and ECMS. This unified liquidity pool was a key driver of consolidation.
Typical Use Cases
Large-value interbank EUR payments, monetary policy operations, securities settlement, instant payment settlement, Eurosystem collateral management
Key Data
Participants & Access
Membership Requirements
Direct participation requires credit institution status and Eurosystem counterparty eligibility. Access through ESMIG (Eurosystem Single Market Infrastructure Gateway). Indirect participation available through correspondent banking.
Governance & Risk
Governance Model
Owned and operated by the Eurosystem. The ECB Governing Council sets policy. Day-to-day operations managed by the 4CB (four central banks). Market Infrastructure Board provides advisory input.
Concentration Risk
High systemic importance. TARGET is the sole euro RTGS system and the backbone of eurozone financial infrastructure. Its failure would disrupt interbank markets, monetary policy operations, and retail payment settlement. Designated as a systemically important payment system (SIPS) by the ECB.
Resilience & Business Continuity
Dual-site architecture with automatic failover. Regular business continuity testing. The Eurosystem maintains contingency measures including a separate contingency network. The March 2023 consolidation initially experienced operational issues (settled within weeks).
Dispute Resolution
Governed by ECB TARGET Guideline. Disputes between participants and the operator follow ECB procedures. Claims for malfunctions handled under the TARGET compensation scheme.
Pricing
T2 pricing follows a degressive model based on volume. TIPS pricing is €0.002 per transaction. T2S pricing is per instruction with volume discounts.
Transaction fee: T2 RTGS: €0.80 per transaction (flat fee option) or €0.125–€0.60 degressive
Source: European Central Bank
Connectivity
includes
TIPS
TIPS is a component of the TARGET platform for instant payment settlement
settles
SEPA Inst
TARGET/TIPS settles SCT Inst transactions in central bank money
settles
STEP2-T
STEP2 net positions settle in T2
settles
EURO1
EURO1 net positions settle in T2
Peer Comparison
TARGET is unique in combining RTGS, securities settlement, instant payments, and collateral management on a single platform. Fedwire and CHAPS are pure RTGS systems. TARGET's multi-service architecture is unmatched globally.
Compare in detail →Regulatory Framework
170dNov 1, 2026
SWIFT CBPR+ SRP case management mandate
SWIFT mandates adoption of the Status Reporting Process (SRP) for case management in CBPR+ ISO 20022 messages. All participants must support standardized exception and investigation handling via camt messages. Also in Nov 2026: MT101 discontinuation. Full end of MT/MX coexistence targeted for Nov 2028.
230dDec 31, 2026
Digital euro preparation phase
ECB preparation phase for digital euro with concrete pilot timeline disclosed March 2026. Regulation proposed June 2023, awaiting European Parliament and Council adoption. Pilot launch planned H2 2027 on TIPS infrastructure, with potential first issuance by 2029. Pontes DLT wholesale settlement launching Q3 2026.
1327dJan 1, 2030
Mastercard 100% e-commerce tokenization target (Europe)
Mastercard’s target for 100% tokenized e-commerce transactions in Europe. All card-not-present transactions to use network tokens instead of PANs.
Intelligence (114)
NewsMay 13, 2026
ECB Digital Euro Pilot Application Window Closes May 14 as Eurosystem Targets Up to Thirty PSPs
The pilot is planned to start in the second half of 2027 and run for 12 months. Settlement will flow through the Eurosystem's TARGET infrastructure.
RegulationMay 13, 2026
European Parliament ECON Committee Adopts PSD3 and PSR Texts, Clearing Path to Plenary Vote
ECON approved the PSD3 and PSR final compromise texts on May 5, clearing the last committee hurdle before a full Parliament plenary vote expected during the May 18-21 session. The legislation replaces PSD2 and applies 21 months after Official Journal publication, likely around March 2028.
RegulationMay 9, 2026
European Parliament ECON Committee Clears PSD3 and PSR with Overwhelming Majorities
The approval sends both texts to plenary for a final simple-majority vote expected later in May, with Official Journal publication anticipated by September 2026 at the latest, starting the 18-month countdown to PSR application and PSD3 transposition.
RegulationMay 7, 2026
PSD3 and PSR Clear EU Council as COREPER Endorses Final Texts
The final legislative texts for the EU payment services overhaul passed a key Council hurdle on April 22, 2026, with parliamentary committee and plenary votes expected in May. Official Journal publication is targeted for mid-2026, starting the 18-month clock for PSR general application.
NewsMay 4, 2026
UK Parliament Hails Bank of England RTGS Renewal as Model for Government IT
The programme cost GBP 431 million. The PAC highlighted the Bank's two years of upfront planning and decision to retain intellectual property in-house as key success factors.
NewsMay 1, 2026
FedNow Launches Network Intelligence API for Real-Time Fraud Risk Assessment
The API targets authorized push payment fraud, a category where senders are manipulated into making legitimate-seeming transfers.
AnalysisApr 30, 2026
US Instant Payment Rails Pursue Separate Cross-Border Strategies
The Federal Reserve and The Clearing House are independently extending FedNow and RTP beyond US borders through structurally different mechanisms, with RTP targeting a September 2026 correspondent bank launch and FedNow pursuing a regulatory amendment to Regulation J.
AnalysisApr 28, 2026
Bank of England Quantifies RTGS Volume Loss to Faster Payments After Limit Increase
A Bank of England staff paper establishes the first causal link between raising instant payment limits and declining RTGS volumes. CHAPS transaction volume in the GBP 250,000 to GBP 1 million band fell 10.7 to 13.7 percent following the 2022 Faster Payments limit increase, a finding relevant to central banks worldwide adjusting instant payment thresholds.
NewsApr 27, 2026
RTP Network Targets September 2026 for Correspondent Bank Cross-Border Expansion
The Clearing House's RTP network will begin supporting correspondent bank activity in September 2026, expanding the reach of US instant payments to institutions without direct network connections as the rail posts $480 billion in first-quarter volume.
AnalysisApr 27, 2026
FedNow and RTP Both Target Cross-Border Payments, Ending US Instant Rails' Domestic-Only Era
In April 2026, both US instant payment services took concrete steps toward international capability. The Fed's Regulation J proposal would enable intermediary bank participation on FedNow, while RTP's mandatory On-Behalf-Of compliance deadline introduced explicit rules for identifying cross-border transactions.
Reference Documents (2)
TARGET Operating Schedule
ECB · operating_schedule · v2026 · Jan 1, 2026
CBPR+ Roadmap Beyond November 2025
SWIFT · regulatory_text · vSeptember 2025 · Nov 15, 2026
SEPA Credit TransferSCT
European Payments Council (EPC)
SEPA Direct Debit CoreSDD Core
European Payments Council (EPC)
SEPA Direct Debit Business-to-BusinessSDD B2B
European Payments Council (EPC)
SEPA Instant Credit TransferSCT Inst
European Payments Council (EPC)
T2 (TARGET RTGS)T2
Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
TARGET Instant Payment SettlementTIPS
Eurosystem (Banca d'Italia lead development)
TARGET2-SecuritiesT2S
Eurosystem (4CB platform)
Eurosystem Collateral Management SystemECMS
Eurosystem (Banque de France lead development)
UK Payment InfrastructureUK Payments
Pay.UK (scheme management), Bank of England (RTGS), VocaLink/Mastercard (processing)