European Market Consultation for Target Instant Payments Settlement opened

09/01/2017

The European Central Bank has opened a market consultation project on the TARGET Instant Payments Settlement (TIPS) User Requirements Document (URD) this will run from the 9th January until 24th February 2017. Financial market infrastructures and financial institutions in Europe with a stake and interest in instant payments are invited to provide their feedback on the URD to the Eurosystem. The aim of this document is to describe the principles and functionalities of TIPS on a high level to cater for the business level perspective in which TIPS could be beneficial to the European financial market. Scope of the Project In order to facilitate the emergence of instant payments, the Eurosystem has launched an investigation phase to identify the user requirements for a service to support Central Bank Money (CeBM) settlement of instant payments 24/7/365. TIPS is a service for the settlement of instant payments. TIPS will offer instant settlement services to its Participants when an originator instructs the transfer of funds to a beneficiary. The primary aim is to offer settlement of instant payments in Euro. However the technical implementation of TIPS shall be currency agnostic in its design, i.e. TIPS could support settlement in non-Euro Central Bank money as well. TIPS shall support Participants to be compliant with the SEPA Instant Credit Transfer (SCT Inst) scheme which the European Payments Council (EPC) has developed for instant payments in Euro. TIPS shall follow the process flows defined by the scheme and offer real-time information on the status of transactions and liquidity transfers to Participants. TIPS messages shall be in line with SCT Inst scheme, all payment messages shall use the same format if applicable. However, other schemes in other currencies are not excluded and might be supported in the future, if deemed necessary. TIPS is intended as a harmonised and standardised pan-European service with common functionality across different countries and jurisdictions. The lean nature of the service will promote efficiency in the settlement of instant payments. Common functionalities across jurisdictions and the intention to support compliance of the SCT Inst scheme will ensure harmonisation of practices and further market integration in the settlement of instant payments. TIPS offers a very flexible participation structure that can support different business models without compromising the speed and efficiency requirements stipulated by the SCT Inst scheme. There are three classes of actors in TIPS: Participants, Reachable Parties and Instructing Parties.

You can download the full document from here.

Institutions are requested to supply  their comments to the mail-id TIPS@ecb.europa.eu. The User Requirements Document will be enhanced based on the feedback from the market Participants. The project team will consider all comments while updating the URD. All comments and responses will be provided during the month of March, in line with our transparency principles; any comments received will be published on the internet, unless it is clearly indicated that the author does not consent to such publication. If the decision in June 2017 is to develop the service, TIPS is expected to be operational in November 2018.

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