ISO 20022 (XML) will also be used for high-value payments – TARGET2 migration is becoming mandatory
We've just managed the SEPA-migration, and here comes the next big change.
For TARGET2 Securities (T2S) the Eurosystem has already announced to accept all instructions only in Syntax ISO 20022. Beginning from 2017 ISO 20022 will also become mandatory for all TARGET2. The SWIFT Formats presently used will no longer be accepted.
Formats affected: customer payments (at present SWIFT MT 103/103+) as well as bank-to-bank payments (at present SWIFT MT 202). TARGET2-payments are not only produced by the classical payment transfer applications, but also by a variety of systems for the completion of trade businesses (investment banking).
According to the publication of Deutsche Bundesbank this topic will have its own dynamics:
Not only will the Euro be affected. Other currencies and their RTGS-systems (individual payment transfers) as CHF, JPY etc. are likely to follow.
In cases that you today experience issues in reconciling Ancillary System Cash-Flows in TARGET2, you may expect the situation to improve, given the more granular and rich data-structure. However, the change process will not be easy. We may call on us to support you with our long-time (SWIFT)-experience in this field. Contact us. We assist you with conversion and help you to achieve success in your projects.