Target 2 and Settlement Finality

• Author: Ivan Mangatchev
• Position: Assistant Professor, PhD, Department of Law, New Bulgarian University, 21 Montevideo Street, Sofia, Bulgaria
• Pages: 92-99

ACTA UNIVERSITAT

92

Abstract:

This article exami

regulated by Dir

ective 98/26

settlement finality in payme

Directive 2009/44/EC of th

Directive 98/26/EC on settle

2002/47/EC on financial c

(Directive 2009/44/EC). As t

and finality of the settlement

Keywords:

TARGET 2; sett

1. TARGET 2 as Sys

What does TARGET 2

Bank of 26 April 20

settlement Express Tra

“Trans-

European Autom

which has a decentral

settlement (RTGS) syst

executed via an RTGS

clearing balances are

ca

The design of the TAR

RTG-

Splus system ope

Banca d’Itlaia (Geva, 20

1

Assistant Professor,

PhD,

Sofia, Bulgaria,

postal code:

author:

mangatchev@nbu.bg

2

http://www.ecb.int/ecb/lega

3

Cf. Clearing and Settlem

(September 2000) 16.

ATIS DANUBIUS

Vol. VII,

TARGET 2 and Settlement Fin

Ivan MANGATCHEV

1

mines how TARGET 2 as system implements the idea of settle

/26 EC of the European parliament and of the Co uncil of 19

ment and securities settlement systems (Settlement Finality D

the European parliament and of the Council of 6 May

20

tlement finality in payment and securities settlement systems

l collateral arrangements as regards linked systems and

s the title of the arti

cle states two points are the cornerstones

nt in this system.

ettlement; settlement finality; Directive 98/26 EC; Directive 20

ystem

2 mean? According to

the Guideline of the Europe

2007 on a Trans

-European Automated Real-

ti

Transfer system

2

(Guideli

ne of the ECB), TARG

tomated Real

-

time Gross settlement Express Transf

tralized structure linking together national real

-

ystems and the ECB Payment Mechanism (EPM)

S system are settled individually; in all other arr

calculated and then settled

3

.

RGET 2 system was mainly inspired by the Form

perated by the Bundesbank and the New BIREL

, 2008, p. 114).

D,

Department of Law, New Bulgarian University, 21 Monte

de:

1618, tel.: +359 (2) 811 0222, fax: +

359 (2) 811 0260. Co

.bg.

egal/pdf/02007o0002

-20101122-en.pdf.

lement Arrangements for Retail Payments in selected Co

AUDJ, vol. VII, no.

II, no

. 1/2011

Finality

ttlement finality

9 May 19 98 on

y Directive) and

2009 amending

s and Directive

d credit claims

es

– TARGET 2

2009/44 EC

opean Central

time Gross

RGET 2 is a

nsfer syste

m”,

-

time gross

). Payments

arrangements

rmer German

EL system of

ntevideo S treet,

. Corresponding

Countries, BIS

no. 1, pp.

92-99