The Eurosystem collateral management system is expected to officially launch on 16 June 2025. The new Eurosystem Collateral Management System (ECMS) will launch on a date set by the ECB’s Governing Council in order to provide sufficient time for national central banks of the euro area and their counterparties to “thoroughly test the system in a stable environment to ensure user readiness.”
The decision to reschedule the launch of the ECMS from November 2024 was due to the need for additional preparation time “identified by the Market Infrastructure Board to achieve a seamless launch.”
The ECMS is described as being a unified system that will aim to harmonize the management of collateral for Eurosystem “credit operations, replacing the systems currently operated by the 20 euro area national central banks.”
Alongside the other TARGET Services offered by the Eurosystem, the ECMS will reportedly provide improved liquidity management features in order to facilitate the “smooth” flow of cash, securities as well as collateral across European markets.
As covered, the Eurosystem, which comprises the European Central Bank and the national central banks of the Member States whose currency is the euro, is the “monetary authority of the euro area.”
The Eurosystem have as their primary objective the “maintenance of price stability for the common good.”
As reported, the Eurosystem is official and recognized the monetary authority of the eurozone, the collective of European Union member states that have adopted the euro “as their sole official currency.”
The Eurosystem’s basic tasks are directly “related to achieving price stability and consist in defining and implementing the euro area’s monetary policy; conducting foreign exchange operations consistent with Article 109 of the Maastricht Treaty; holding and managing the official foreign reserves of participating EU” among other tasks.
The Eurosystem consists of the ECB and the national central banks (NCB) of the 20 member states that are part of the eurozone.
The national central banks apply the monetary policy of the ECB.