The Eurosystem has launched the Eurosystem collateral management system (ECMS) as it works towards a more unified European financial framework.
As the fourth TARGET service from the European Central Bank, the ECMS manages assets used as collateral in credit operations. It replaces the 20 national collateral management systems operated by 20 euro area national central banks.
On the launch, the European Central Bank commented, “with the ECMS going live, the Eurosystem now offers a single system that harmonises the management of collateral for Eurosystem credit operations. Furthermore, the ECMS will facilitate the smooth flow of cash, securities and collateral within the euro area by enhancing the liquidity management features of the TARGET Services.”
TARGET Services providers the Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d’Italia have created the software and environment for the new system.
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