The European Central Bank has published a consultation paper on a possible further extension of the operating hours of T2, the Eurosystem’s real-time gross settlement system, as a first step towards moving closer to a 24/7 model. The exercise seeks market input on needs, constraints, benefits, risks and costs, and does not constitute a commitment to implement specific changes, with any extension not expected to materialise in the short term. T2 currently operates Monday to Friday and is closed at weekends and on six TARGET holidays, while TARGET Instant Payment Settlement (TIPS) runs 24/7/365, creating liquidity-management frictions because funding and defunding of TIPS accounts from other TARGET accounts is only possible when Central Liquidity Management is open. The paper sets out options including shortening the daily end-of-day downtime, opening Central Liquidity Management and/or RTGS on Saturdays, Sundays and TARGET holidays, and potentially revisiting the night-time reopening for payments (currently 02:30) and key cut-offs (including the 18:00 interbank cut-off), alongside questions on intraday credit, collateral management dependencies and whether to introduce new value dates for non-business days; it also flags potential implications for TARGET2-Securities and monetary policy implementation. Responses are requested by 30 September 2025 using the provided template, with submissions to be publicly disclosed unless confidentiality is requested. A summary and analysis of feedback is due by the first quarter of 2026 and is expected to include initial proposals for further consultation rounds before a final proposal and timeline are submitted for Governing Council approval.

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