TITLE: European Central Bank Amends TARGET Settlement System Guidelines to Enable Cross-Currency Instant Payments
BODY:
On May 4, 2026, the European Central Bank (ECB) published Guideline (EU) 2026/1473, amending Guideline (EU) 2022/912 on the Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). The amendment introduces several operational enhancements to TARGET's instant payment settlement (TIPS) service and modifies participation eligibility criteria.
The guideline establishes cross-currency settlement functionality within TIPS, enabling participants adhering to the European Payments Council's SEPA One-Leg Out Instant Credit Transfer (OCTs Inst) scheme to send and receive payments from November 14, 2026. From June 15, 2026, participants gain access to automatic liquidity transfer facilities between main cash accounts (MCAs) and TIPS dedicated cash accounts (TIPS DCAs), triggered when floor or ceiling limits are breached. The amendment clarifies eligibility requirements for applicant participants subject to restrictive measures adopted by the Council of the European Union or Member States under Articles 65(1)(b), 75, or 215 of the Treaty on the Functioning of the European Union, ensuring commensurable treatment with minimal discretion for TARGET component operators. National central banks (NCBs) retain the ability to accelerate participant obligations following defaults resulting in participation termination, though they may now elect not to accelerate obligations where defaults result in participation suspension only. From July 1, 2026, real-time gross settlement dedicated cash account (RTGS DCA) fees are amended, introducing revised pricing structures for monthly fees and transaction charges based on payment order volumes.
National central banks must implement these amendments and notify the ECB of compliance measures by May 18, 2026, with measures from Annexes I and II applying from June 15, 2026, and measures from Annexes III and IV applying from November 14, 2026.