TARGET Services are financial market infrastructure services developed and operated by the Eurosystem which ensure the free flow of cash, securities and collateral across Europe.
The CBC is a participant as well as the operator of TARGET-CY, the Cyprus component of TARGET, in line with the responsibilities set out in Guideline ECB/2022/8, as amended (ECB/2023/22) and the TARGET-CY CBC Directive of 2023 (Κ.Δ.Π. 58/2023) as amended (Κ.Δ.Π. 356/2023), (only available in Greek).
T2-CY
The Eurosystem has successfully launched on 20 March 2023 the new T2 payment system, which comprises an RTGS system and a central liquidity management tool. T2 has replaced TARGET2 as the new RTGS system that settles payments related to the Eurosystem's monetary policy operations, as well as bank-to-bank and commercial transactions.
The participants of the Cyprus component of T2, the T2-CY, are credit institutions operating in Cyprus, the Cyprus Stock Exchange, the Cyprus SEPA Direct Debit Payment System (CY-SDD), the Cyprus Clearing House for cheques (CCH), JCC Cards and the Central Bank of Cyprus.
For more information, please contact us at the e-mail address target@centralbank.cy.
TARGET Instant Payment Settlement: TIPS-CY
The ECB has developed an innovative pan-European instant payment service for settlement in less than 10 seconds, in central bank money. The TIPS service was launched on 30 November 2018 and the CBC, in its capacity as the operator of TARGET-CY, stands ready to provide support to local authorised credit institutions and other potential participants, for their participation in TIPS.
Policy on the use of prefunding by ancillary systems
With regard to ancillary systems' access to T2, the Eurosystem has put in place a policy on the use of prefunding by ancillary systems, specifying eligible transaction types and applicable conditions.
Access to T2 by ancillary systems (and hence the use of prefunding) is expressly not permitted for use cases such as the issuance of stablecoins to the public.
Policy on access by non-bank payment service providers to all euro area central bank payment systems
In line with the Eurosystem’s policy on access by non-bank payment service providers to its central bank payment systems, payment institutions and electronic money institutions providing payment services will:
(i) be able to have direct access to T2-CY and TIPS-CY, and
(ii) not be able to safeguard users’ funds at accounts held with the CBC.
The TARGET Guideline will be accordingly updated and will come into effect on or shortly after 9 April 2025.
The CBC will adhere to the Eurosystem policy by this date, or as soon as the transposition of relevant laws into national legislation is completed.
More information on the Eurosystem policy is found on the website of the European Central Bank at this link.