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TARGET T2/T2S Consolidation Project

Successful & timely adaption of the new TARGET platform

We support our clients to manage and meet the tight deadlines from the TARGET T2/T2S Consolidation Project in terms of impact analysis and requirement engineering for development as well as on migration and use of TARGET Date Migrating Tool (DMT) , user training and TARGET certification testing. In addition, we provide insights into the functionalities of the new TARGET platform and the potential to leverage such functionalities to optimize and automate liquidity management, support data analysis, insource/outsource tasks and extend the current product scope.

The consolidation project timelines cannot be missed. Our clients can rely on our expertise to ensure readiness for all deadlines set by TARGET to be allowed to continue using their services post the big bang go live of the new platform.

TARGET T2/T2S Consolidation Project

The nature of the TARGET T2/T2S Consolidation Project, mainly related to the need for a Big Bang Approach, means that the migration preparation process for all participants becomes essential. If participants are not ready to migrate on the Go Live of the T2-T2S Consolidation Project, they may, among other consequences, be unable to pay or be paid in central bank money, be cut-off from access via an Ancillary System or need to access Payment Services through another counterparty (become an indirect member rather than a direct member). Even indirect participants will need to adjust IT applications to new SWIFT format, as required by their custodian or SWIFT gateway vendor.


TARGET stands for Trans-European Automated Real-time Gross Settlement Express Transfer and covers all dealing with central bank money for EUR. The TARGET platform allows financial institutions to settle in central bank money and the European Central Bank to conduct monetary policy and includes additional services

  • T2S – Securities Settlement System to settle the payment leg of a security trade against EUR or DKK
  • TIPS – Instant Payment System in EUR

The aim of the T2/T2S Consolidation is to provide a more streamlined and technical updated solution across all services, which shall include shared functions to connect to all services, manage liquidity, maintain static data and provide shared admin services.

  • New Real Time Gross Settlement (RTGS) system with direct liquidity transfer between Dedicated Cash Accounts for the different services including enhanced services and extendable to multiple currencies.
  • Central Storage and Management for all reference data in TARGET systems to optimize and ease static data management by avoiding redundant data and inconsistencies across the different services and providing a single user interface to access and manage reference data and create queries.
  • New single gateway to the all TARGET service to allow multi-vendor connectivity with standardized messaging (ISO20022) in compliance with updated Information Security and Cyber Resilience Requirements.
  • Central Liquidity Management system for all TARGET services providing a consolidated overview of accounts for management and calculation of required liquidity reserve as well as functionality to allow automated liquidity transfers between accounts and reservation of liquidity to certain purposes.
  • Shared administrative functions to manage system events, batch runs and query processing as well as billing service.
  • New Data Warehouse for the new RTGS and T2S with access for participants to define and query reports on a T+1 base.

Challenges and Opportunities

New SWIFT messaging format and TARGET Gateway connection

All services will change to use the new ISO20022 standard message format, which is currently used in T2S. In addition, all ancillary systems connecting to the TARGET platform must go through the new ESMIG gateway, which will be the single access point to TARGET for all services. Connectivity test to TARGET will start in September 2021. Deadline for internal development and connectivity is 31st August 2021.

Migration to new static data model

The new TARGET platform has a central storage system for static data; Central Reference Data Management (CRDM) system. The CRDM system requires a full migration from all services. The account model changes from the consolidation as well as other static data changes will mean that the migration is not just a simple 1:1 movement of existing data. The setup will require adaption to the new concepts of the platform and must be re-defined. The final migration shall be completed over the same weekend for all participants. Hence, there will be 2-3 mandatory dress-rehearsals and the participants will be required to use a migration tool. Final deadline for migration readiness is 31st October 2022.

User Certification Testing

To allow participants to migrate to the new TARGET platform, they must pass mandatory TARGET User Certification tests covering all functions and services of the platform, consisting of 5 separate time boxed test phases with mandatory exit criteria. Final deadline for user test completion is 30st September 2022.

Central Liquidity Management

The Central Liquidity Management system for all TARGET services includes a bunch of new functionalities, which can automate and optimize liquidity management. This includes:

  • Definition of Liquidity Transfer (LT) Groups across different bank entities and central banks
  • Event triggered standing orders for automatic liquidity transfer within LT Groups
  • Liquidity reservations for Central Bank operation or high priority payments
  • multilateral or bilateral party payment limit setup
  • consolidation of all overnight interest rate debits/credits

These functions can be leveraged through the CLM application or setup in CRDM.

Data Analysis

The new Data Warehouse stores data from both the RTGS and T2S and will be accessible for TARGET participants. Users can query data through predefined reports with a data granularity as detailed as transaction/account/participant level. This will allow participants to use this data for internal analyses.

New Products/Entities

The shared reference data, connectivity, liquidity management, scheduler and billing for the TARGET services will make the use of further services much cheaper for participants. Furthermore, the LT Groups and ability to create user access groups can make the outsourcing of services possible to other participants or offering services on behalf of other financial institutions.

Our approach


We drive impact analyses for our clients and support gathering and documentation of business requirements to internal IT architecture and coordination with external vendors. In addition, we offer advice on the new TARGET platform and how to leverage from new functionality.


We can advise on the essential data setup of the TARGET platform and give support on the migration of static data to cover this and seize the opportunities for optimizing liquidity management or target operating models when doing so. We can train key users and support the use of the DMT in order to automate most parts of the migration.

Project Management

We are experienced within project management and can support project planning, management of timelines for TARGET time boxed test phases, migration dress-rehearsals and Go Live.

Test Management

Our experience on test management helps our clients deal with the overall test strategy, plan and prepare a runbook for both internal and TARGET User Certification testing. We can support and participate in the test execution and help our clients prepare for internal test cases aligning them with the TARGET User Certification test cases.

User Training

We offer support to create user guides and execute user trainings, both for super users and new TARGET platform operations/maintenance users.

Want to know more about ECMS?

European Collateral Management System - Adapting to the unified system for managing collateral in Eurosystem credit operations.

Your contact person

Hans Joachim Lefeld


Christian Kjølhede