White Paper

Eurosystem Collateral Management System

Changes and benefits for the Financial Institutions

Eurosystem Collateral Management System

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#Financial Services

Be ready for the go-live day set for the 8th of April 2024

Context

In December 2017, the Governing Council of the European Central Bank approved the ECMS project that will go live on 8 April 2024. ECMS introduces the creation of a technical platform that will replace the existing 19 National Central Banks for the management of collateral used in the Eurosystem credit operations. The project is part of the Eurosystem’s “Vision 2020” initiative for the development and strengthening of financial market infrastructures.

BACK OFFICE & OPERATIONS

Changes of day-to-day activities due to harmonized procedures and automation of processes lead to increased efficiency and time saving

IT DEPARTMENT

Changes in the IT department due state-of-art technologies and increased features lead to secure and automated processes

RISK MANAGEMENT

Changes in the risk management processes due to higher quality of data and consistency of collateral management regulation across jurisdictions lead to risk reduction especially of operational risks

TREASURY & LIQUIDITY

Changes in the Treasury & Liquidity activities due to new functionalities and increasing synergies with TARGET Services lead to better collateral and liquidity management

SETTLEMENT

Changes in the settlement department due to new and harmonized functionalities lead to a more consolidate and optimized settlement platform

TAX & LEGAL OFFICE

Changes in contractual and legal terms due to the implementation of a single ECMS rulebook lead to greater clarity and standardization of the Tax & Legal Office

Benefits overview

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How Reply can help you

Assessment
Reply assists Financial Institutions in analysing the current landscape and identifying the practices to be implemented in order to be able to take part of the ECMS. We will conduct an assessment aimed to understand the benefits and changes on the business processes and the IT architecture.

Plan and Design
Reply will design the roadmap considering all the stakeholders involved in

order to track and meet the ECB’s deadlines. We will review and design the internal business processes affected by the ECMS and more in general by the Vision 2020.

Implementation
Reply will define a project plan and it will follow the implementation of the business processes designed.