ECMS – European collateral management system
The European collateral management system (Eurosystem Collateral Management System – „ECMS“) is unified technical platform for National Central Banks, through which, from November 2023, the central banks will manage eligible asset used as collateral in monetary policy operation of the Eurosystemin in a harmonised manner. The aim of ECMS is to increase efficiency of the collateral mobilisation and management and support further harmonisation of processes within the Eurosystem.
The ECMS system, similarly as other services of the TARGET group (T2, T2S, TIPS), will be accessible through ESMIG (Eurosystem Single Market Infrastructure Gateway). Communication with the ECMS will be performed in U2A (user – application, through the graphical user interface) or in A2A regime (application – application) by exchange of ISO 20022 standard messages between the systems.
As regards the settlement system of CDCP, to implement requirements needed for functioning of ECMS, CDCP shall utilise existing functionalities in T2S and the information system of CDCP („IS CDCP“) and ready-for-use/forthcoming changes at T2S and IS CDCP level.
Among the existing functionalities can be added also the DCP model (T2S – Directly Connected Party). The DCP will be so called ECMS Technical Participant registered by CDCP as a participant in IS CDCP and T2S under specific BIC11 NBS. Registration will ensure incoming and outcoming communication of the ECMS to/from T2S, and consequently between T2S and IS CDCP. It will also enable the NBS to access accounts relevant for collateral management in order to direct messages related to corporate action events, invoicing and reconciliation in T2S, and in IS CDCP (forthcoming changes in IS CDCP).
SCoRE standards (Single Collateral Management Rulebook for Europe) is set of harmonised rules for managing collateral. SCoRe implementation date is identical to the ECMS go-live date. The ECMS will use the SCoRE standards in connection with harmonised procedures for processing of corporate action events and billing.
Within this context, CDCP prepares several changes in IS CDCP, in order to ensure compliance with the SCoRE standards requirements.
Author: Peter Nagy