TARGET2 Successfully Launched on March 20, 2023

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In our November 2022 Tomato Catch Up, we discussed the postponement of the TARGET2 project, along with the ISO 20022 migration extension. The go-live date was pushed out from November 21, 2022T to March 20, 2023, to ensure greater system stability and user readiness.

Target2 is Eurosystem’s new real-time gross settlement (RTGS) system and central liquidity management tool. The users of TARGET2 are the EU central banks and the commercial banks in each member country. More than 1,700 banks use TARGET2 to make transfers in euros for themselves or for their customers.

The migration to the new system took place between 17 and 20 March 2023. The first day of TARGET2 operations went smoothly despite a delayed closure, which was identified and fixed. The new RTGS system settled around 400,000 transactions, similar to the average volume before the migration. The software and the environment for the new system were delivered by the Banca d’Italia, the Banco de España, the Banque de France, and the Deutsche Bundesbank (the four central banks that act as service providers for TARGET services).

Read the official press release on the ECB website.

PwC Webcast: IFRS Technical Update

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The latest PwC IFRS update webcast covers the following topics:

  • New in 2023: IFRS Standards and amendments newly effective in 2023 (18 Minutes)
  • Hot topics, hyperinflationary economies, supplier finance arrangements, carbon credits (14 Minutes)
  • Spotlight on tax: OECD global minimum taxes (Pillar Two), EU Windfall taxes (21 Minutes)

More webcasts can be accessed via the same link. 

Click here to listen the PwC Webcasts in English

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How will an RfP really serve you?

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How can you obtain excellent answers from vendors that will enable you to choose the one that will ensure the successful implementation of your project into a reliable long-term solution.

1) The RfP can be prepared by an internal person, by a young and lesser-qualified person, or with the help of an experienced external consultant.

2) RfPs often contain 100 or more questions because every single detail is critical. It becomes problematic when a provider hires a not-so-experienced person who may simply lack the skill in recognizing all the details. It really pays to hire an experienced specialist who knows the vendors, is neutral, and sometimes skips questions because the essentials are built in anyway.

3) Do not believe all the answers you receive. It is imperative that vendors answer perfectly to get the job. Also, verify that the vendor’s team is prepared to provide long-term support to you as a client.

4) The responses from a small vendor should be evaluated differently than the identical responses from a large international vendor. Read between the lines.

4) Keep all communication channels open to send documents and emails back and forth. Sometimes one phone call can unravel many lines of an email.

5) Are your finance, accounting and IT people willing to work the hours it takes to get the project completed? Are these people willing to work as a true team with the vendor?

6) Are you prepared to adjust goals when things change? Examples: the software decided upon is purchased from another vendor, internal accounting is suddenly involved with another project, the ERP may change, etc. etc.

Call Martin Schneider for a mutual exchange and accept the counsel from others who have a similar project.

Get inspired by the basic texts on our free Tomato RfP in German and Tomato RfP in English.