TARGET2 presentation

• London, 3 January 2008

• Bernard de Groes

• Bas Dekker

Agenda NL

• TARGET2 update Bernard de Groes

• Migration issues Bas Dekker

TARGET2 update

Bernard de Groes

NL

Public project plan NL

GFS, UDFS

T2 user guide

Testing NL

Internal tests

(3CB)

Acceptance (CBs)

2007 2008

User testing activities(group 1)

User testing activities(group 2)

User testing activities(group 3)

Group 2 testingESCB planning

NL

User testing activitiesConnectivity tests

Interoperability tests (certification)

Free testing

Country testing Business day testing

at institution level at country level at European level

19/0

6

17/0

9

05/1

0

09/1

1

01/0

2

Group 2 testingdocumentation

NL

• USER TESTING GUIDE FOR MIGRATION

•Connectivity and interoperability test scenarios

•Test tool (T2TRIS)

•Operating hours test environment

•Responsibilities Credit Institutions and NCB

•Country and business day test scenarios:

•Migration weekend test

•Contingency procedures

•Connection with TARGET1

•Ancillary system schedules

Group 2 testingdocumentation and registration

NL

Other Testing related documents:

•ICM User Handbook

•T2TRIS user guide

•Nat. Migration Profiles

•Ancillary System Profiles

Registration TEST:

•SSP registration forms

•e-mssf SWIFT registration

Group 2 testingDNB planning

NL

User testing activitiesconnect

Interoper tests

(certification)Free testing

Country testing Business day testing

at institution level

at country level at European level

15/0

5 st

atic

dat

aen

try

19/0

606

/07

conn

ecti

vity

test

fin

ishe

d

17/0

9

05/1

0

09/1

1

01/0

2

15/0

8 in

tero

per.

test

fin

ishe

d

NLtest

01/0

1 st

atic

dat

aE

ntry

in P

RO

D

01/09-28/09 NL test scenarios

07/0

2 G

O/N

O G

O18

/02

T2

LIV

E

Group 2 Migration to PROD NL

Registration:

•15/10/07 legal documents finalized

e-mssf SWIFT registration submitted

•01/01/08 SSP registration forms PROD submitted

(no copy of data from TEST)

Migration:

•07/02/08 GO / NO-GO

•15/02/08 18:00 TOP close of day, no night-settlement

•16/02/08 migration of dynamic data

•17/02/08 verification of data in SSP

•18/02/08 07:00 opening TARGET2

NO FALL-BACK!

Planning

• 19 Nov 2007 Group 1 live• 18 Febr 2008 Group 2 live• 19 May 2008 Group 3 live, start T2 pricing

Public project plan NL

GFS, UDFS

T2 user guide

Other Documentation NL

• SSP specifications– ICM User Handbook version 2.3– GFS version 2.1– UDFS version 2.4

• Operational procedures– T2 user guide– T2 user guide for migration– T2 Guideline

Questions?

Migration issues

Bas Dekker

NL

Migration

• TARGET2 is one of the most demanding changes in the European financial sector

=> A lot of projects must be synchronised

• Individual migration - CB, CI, AS• National migration - CB• SSP - 3CB• ESCB wide migration - ESCB+3CB

Migration scenario

No European wide Big Bang …

Not all participating countries and their banking communities should change together in one single day!

Conclusion:• Interlinking for migration purposes only• Pilot group• Country windows

Migration scenario

… but a Country Big Bang

Not feasible to connect one country with two RTGS components

One major possible exception to Country Big Bang:• Settlement of ancillary systems might be transferred

to the SSP at a later stage• This implies the use of the local system (home

accounting) for this transition period

TARGET2 Migration

• Smooth transition from the current TARGET to the new TARGET2 system for all involved players (CBs, CIs, ASs)

• Co-ordination of all implementation activities after the development of the system, meaning testing plus changeover until all participating CBs have moved to the SSP

• Steering and monitoring the implementation process

TARGET2 migration

• To ensure a smooth migration from TARGET1 to TARGET2 for all involved players

How• Migration strategy following a phased approach• Central banks migrating together with their banking

community• Four migration groups (one reserved for contingency)

– 19 November 2007– 18 February 2008– 19 May 2008– 15 September 2008

Group composition aimed at minimising project risk, reducing effect on level playing field and limiting the costs for central banks and users

Group 1 Group 2 Group 3 Group 4 Austria Belgium Denmark

Germany Finland Estonia

Lithuania

France ECB Reserved

Luxembourg

Ireland Greece for

Slovenia

Netherlands Italy contingency Portugal Poland Spain

Cyprus

Malta

Latvia

Migration group allocation

National Migration Profile

• Objectives:– Information to users– Basis to monitor and steer the migration

• Content– Country migration model

• National Big Bang• No compulsion, no prohibition

– Usage of optional modules selected by a CB– Migration group

Available for all countries.

Contact information and general presentation of the Central Bank’s project.

Settlement modes for ancillary systems.

Requirements for settling specific operations (reserve holding, standing facilities, cash operations…).

National specificities.

National Migration Profile

• Final Migration strategy will be developed following a top-down approach

• Strategy documents will cover:– Testing– Roles & Responsibilities– Communication– Organisation of changeover– Operational framework

Migration Strategy

Tasks Responsibilities

Coordination of T2 Migration Level 2

(TF on Migration Issues)

SSP migration Support to Level 2

3CB

Coordination of national banking community migration

Own migration CBs

Own migration CIs & ASs

Tasks & Responsibilities

Dutch implementation strategy

• National Big Bang– Conversion on Saturday– Ascertain successful migration all accountholders

• Decision to migrate some weeks in advance

Preparation

Before 7 December 2007:• SSP forms with activation date 18 February• E-Ordering CUG with implementation date 2

February 2008

Between 18 January and 1 February 2008:• BKE with :

– TRGTXEPM (for direct participants) or

– TRGTXEHM (for co-managers or HAM accountholders)

Migration weekend February 18, 2008 &

Test weekend Migration December 8, 2007

NL

PURPOSE

• One central communication plan for February 18, 2008. Each participant should provide their milestones (based on their migration plan) to DNB.

• Agreement on the way of communication between participants and DNB.

• To provide a short plan for the test weekend of December 8 and to complete the final version of February 18 with the experiences of testing

NL

CURRENT AGREEMENTS

• Per participant one main contact person and one back up (December 8 and February 18)

• DNB will send out her current generic milestones• All participants can send their milestones to DNB • DNB will create one overall plan

NL

CLARIFICATION OF DECEMBER 8

• Testing is December 8 from 08.00 – 16.00• Participants have to communicate contact persons,

phone numbers and e-mail addresses• TOP will be closed and balances of participants will

be transferred to SSP • Credit facility will be available• Check(s) if all amounts are correct

NL

ADDITIONAL ITEMS• Communication from DNB to participants via e-mail• Feedback of checks by participants by phone• At the end of migration one email will be send to DNB

to confirm everything went well• A short version of the plan will be written for testing as

well• After testing a meeting will be organized to discuss the

experiences

NL

Milestones (1)

04-02-08 / 15-02-08:• Connect to ICM and check Static Data

08-02-08:• Interim version of T2 directory available

11-02-08 / 15-02-08:• Participant send a live payment to themselves (this one will be

rejected since account is not active)• Enter standing order bilateral/multilateral limits• Enter standing order highly urgent/urgent reservations

Milestones (2)

13-02-08:

• Deadline for corrections in T2 directory

15-02-08:

• Final version T2 directory available

• Standing order liquidity transfers between RTGS and sub/mirror account (if applicable)

Milestones (3)16-02-08:• Migration TOP to TARGET2

17-02-08:• Extended Migration possibility

18-02-08:• From 05:00 - 06:00 exchange of one euro payments between Direct

Participants• Before 06:15 Direct Particpants inform DNB about the results of the one

euro payment.• 07:00 TARGET2 (migration group 2) going live.

18-02-08 – 22-02-08:• TOPView available for inquiry

Be prepared NL

It is your responsibility to be ready in time!

Questions?

Lunch! NL

Customer Information about TARGET2

General Functional Specifications

Only fo

r centra

l banks

•General concept of the Single Shared Platform

•„Order book“ for the three central banks developing the Single Shared Platform

Current version 2.1, published July 2007

For Centra

l banks o

nly

Customer Information about TARGET2

User Detailed Functional Specifications

Detailed description ofthe Single Shared Platform's features

OperationalTechnical

Basis for preparing participation in theSingle Shared Platform

Current version 2.4, published November 2007

Customer Information about TARGET2

User Detailed Functional Specifications

• Book 1 - Core Services

• Book 2 - Optional Services

• Book 3 - For Central Banks only

• Book 4 - XML-specifications

• ICM Book 1 - User guide ICM

• ICM Book 2 - For Central Banks only

Communication DNB

• Information sessions• TARGET2 newsletters• TARGET2 websites• Email address (target2@dnb.nl)• Bilateral meetings• TARGET2 Bank Co-ordination Group (T2-

BCG)• TARGET User Group

NL

TARGET2 websites

ECB-website• Address: https://target2.ecb.int/• User: t2user• Password: VBjmspRR7

DNB-website• Address: http://www.dnb.nl

Payments / Non cash-payments / TARGET2

NL

DNB website

• ESCB documents– General Functional Specifications– User Detailed Functional Specifications– ICM User Handbook– Schema Files for XML-messages– National Migration Profiles– Ancillary Systems Profiles– Progress Reports

• DNB documents– Analysis of the consequences of the migration– Presentations– TARGET2 Newsletters– Frequently Asked Questions

NL