TARGET 2 SSP A2A mode Workshop

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TARGET 2 SSP A2A modeWorkshop

Rom, 28th 29th March 2006
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Agenda

• Business approach for A2A in ICM
• Comparison between U2A and A2A
• Business times for A2A
• Models for managing the Euro treasury
• Possible architectures in the SSP
• Documentation

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U2A and A2A in the SSP
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Comparison between U2A and A2A
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The suggested approach to the A2A

• The use of the two modes is not exclusive
• The use of the U2A is in any case mandatory for
  the SSP participants
• The number of messages to be implemented in A2A
  is a business and not a technical choice and
  it should be coherent with the selected
  participation model (single PM account, multiple
  PM accounts, virtual pooling, HAM account, other
  optional module)
• A gradual approach is recommendable.

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The suggested approach to the A2A
A huge number of functions are available in ICM
to satisfy the business needs of the majority of
the users. Therefore it is not needed to
implement all the A2A messages right from the
beginning but only the ones really needed to feed
the internal applications
Payments
Liquidity
Limits and reservations
RTGS
Ancillary systems
Back-up
ADVICE
Payments
Liquidity
HAM
Reserve Management
Standing Facilities
Administration
Services
ICM U2A Functions
Participation
SSP data
Static data
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Business times for A2A
Day X1
Day X
Maintenance period
SSP closed
19.00
1.00
19.30
22.00
6.45
Day X1

EoD processing e.g. back transfer of liquidity,
automatic marginal lending
18.45
7.00
18.00
ICM screens for info display are available during
the whole business day (21 hours) Enter data is
in general not possible during the change of
business day period (1800 1845) Few other
functions are available only during the trade
phase (0700 1800)
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Implementing the control for the treasury

• in order to allow the bank to control the
  treasury flows, a large majority of the big
  players in the RTGS systems have developped
  specific applications
• Such system based on the real time information
  coming from the Central Institutions present to
  the treasury of the bank an aggregate view of the
  Euro liquidity
• Two possible approaches are currently
  implemented...

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Strictly Real Time approach
Payments
Payments
Participant
PI
SSP
Internal Queues
Liquidity Management
Liquidity Mamagement
Liquidity Saving
ICTA
Status of Account (event based)
ICTA Internal Central Treasury Application PI
Payments Interface
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Weak Real Time approach
Payments
Payments
Participant
PI
SSP
Liquidity Mamagement
Information (QA time based)
Liquidity Saving
ICTA
Controls
ICTA Internal Central Treasury Application PI
Payments Interface
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How to implement the Trasury control in the SSP
world

• Three models are possible
• Model A U2A only and using the large set of
  functionality of the ICM
• Model B based on the strictly real time
  approach, it is strongly suggested, if such model
  is selected, to use the event based FIN
  notifications available on the SSP the use of
  the A2A should be limited to consistency checks
• Model C based on weak real time approach is the
  most efficient in terms of costs and usage of the
  SSP functions

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U2A only Model A
No A-to-A
SSP
Liquidity Mamagement
Liquidity Saving
OUT Payment
IN Payment
Controls
Information
Payment Interface
WebStation
Operator
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Strictly Real Time approach Model B
A-to-A
SSP
Liquidity Mamagement
Liquidity Saving
Payments
NotificationsMT012,900,910,019,202,103,204
Information (Exception Handling)
Controls
Controls
PI
Information
ICTA
Internal Queues
Real Time update on payments
WebStation Operator
ALERTS
Recovery
ICTA Internal Central Treasury Application PI
Payments Interface
Operator
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Weak Real Time approach Model C
A-to-A
SSP
Liquidity Mamagement
Liquidity Saving
Payments
Information
NotificationsMT012,900,910,019,202,103,204
Controls
Controls
Information
PI
ICTA
WebStation Operator
Recovery
ICTA Internal Central Treasury Application PI
Payments Interface
Operator
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A2A Documentation

• Available on the TARGET2 website
• UDFS, chapter 9.2
• Book 4 It provides the description of XML usage
  for
• TSSP, for each XML message the following items
  are provided
• - the general meaning of the
  associated function
• - the semantics of each XML attribute
  (TAG)
• - one or more examples
• Schema files (only electronic on the T2 website)