ECB’s Yves Mersch: The possible triangle – frictionless movement of payments, securities and collateral across Europe

Speech by Mr Yves Mersch, Member of the Executive Board of the European Central Bank, at the 2019 Annual General Meeting of the International Capital Markets Association’s European Repo and Collateral Council, Luxembourg, 31 January 2019.

Today I will briefly look back at what has been achieved so far and discuss how the Eurosystem will move forward over the next two or three years by taking measures to consolidate TARGET2 and TARGET2-Securities (T2S), in particular by delivering a centralised liquidity management function. Furthermore, to increase efficiency in the mobilisation and management of collateral and further level the playing field for Eurosystem counterparties, the Eurosystem is developing a single collateral management system that will be capable of managing the assets used as collateral in Eurosystem credit operations for all euro area countries. In a complementary initiative, the Eurosystem has launched comprehensive work on collateral management harmonisation.

The full speech is available at https://www.bis.org/review/r190131b.htm

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