The European Association of CCP Clearing Houses (EACH) has published its response to the European Central Bank consultation on a possible extension of TARGET2 (T2) operating hours, supporting an extension that keeps euro central bank money available later in the day. The association argues that moving the current maintenance window would help CCPs and clearing members meet margin obligations in EUR for longer, reduce operational risk and reliance on non-EUR funding, and better support market shifts such as the move to T+1 settlement. EACH highlights that T2 is currently closed for maintenance from 18:00 to 19:30 CET and that, in practice, CCPs may stop accepting EUR payments after around 17:00 CET or earlier due to operational processes, increasing the likelihood that late-day margin calls are met in other currencies, typically USD. It links longer T2 availability to potential extensions of delivery-versus-payment cut-offs in a T+1 context, and to cross-border payment improvements aligned with the G20 roadmap, including expanded overlap of RTGS hours and greater scope for payment-versus-payment settlement. On design, EACH flags value date handling and the timing of T2’s business day change as the key driver for market participants, supports extending both Central Liquidity Management and RTGS hours to preserve interoperability, and calls for collateral mobilisation and reallocation to remain possible throughout extended hours. It recommends covering public holidays when other major currencies are open while rejecting 365-day or seven-day opening, and notes staffing and cost impacts plus the need for extended commercial bank cut-offs; it also warns that misalignment with TARGET2-Securities processing could limit benefits. On implementation, EACH asks for at least a two-year notice period and recommends a phased approach, starting with keeping T2 open past 18:00 CET to support late margin calls and later preparing for longer hours linked to developments in digital assets and central bank digital currencies. As an interim measure, it proposes making all cash held in T2 eligible for the deposit facility to improve liquidity management while the Eurosystem considers structural changes.
European Association of CCP Clearing Houses 2025-09-30
European Association of CCP Clearing Houses urges the ECB to extend TARGET2 operating hours past 18:00 CET and prioritise weekday coverage
The European Association of CCP Clearing Houses (EACH) supports extending TARGET2 operating hours to enhance euro central bank money availability, aiding CCPs and clearing members in meeting EUR margin obligations and reducing reliance on non-EUR funding. EACH suggests a phased implementation, starting with extending hours past 18:00 CET, and highlights the need for interoperability, collateral mobilisation, and alignment with TARGET2-Securities processing. It also recommends making all cash in T2 eligible for the deposit facility as an interim liquidity measure.