FIA has provided feedback to the European Central Bank's consultation on the extension of T2 (formerly TARGET 2) operating hours. FIA supports an incremental approach to expanding T2 opening hours. As a first step, the association suggests adopting a 23-hour/5-day-a-week T2 payment settlement model for use on a voluntary basis, with the T2 closing window reduced to one hour.
As a second stage, the ECB could further investigate a possible change to 24/7 and/or 365 days a year (opening on public holidays). As detailed in the response, the extension of T2 opening periods should take into account bank-specific issues, notably in relation to their treasury management and liquidity risks arising from the possible extension of T2 opening hours during the weekends.
Read the full response here.
