Payments and Securities Settlements

The Central Bank's key responsibilities in relation to payments and securities settlement systems include:

Eurosettlements and Collateral Management

  • The operation of the Irish component of the Eurosystem's real time gross settlement system, TARGET2 (IE), and the processing and settlement of the Central Bank's high-value transactions for monetary policy operations, investment activity, and government payments.
  • Daily valuation of collateral presented to the Central Bank in connection with the provision of liquidity (together with Financial Markets Division) to commercial banks via Eurosystem monetary policy operations, as well as intra-day and overnight facilities.

Policy and Oversight

The Central Bank, as part of the Eurosystem, plays an important role in relation to policy and oversight aspects of the payment and securities settlement systems used in Ireland by:

  • Promoting their safe and efficient operation by assessing them against established Eurosystem oversight principles and standards.
  • Ensuring that they do not cause, or add to, instability in the operation of financial markets, and that access to such systems by all parties needing to do so is not restricted.
  • Keeping up-to-date with significant payment and securities settlement system developments at Eurosystem/EU level and acting as a catalyst in relation to policy development in Ireland in these areas.
  • Representing Ireland on Eurosystem committees that deal with payment and securities settlement systems matters, such as the ECB's Market Infrastructure and Payments Committee (MIPC) and its associated working groups.
  • Supporting the Department of Finance in relation to relevant EU Commission working groups/EU legislation generally.

The Central Bank’s Policy and Oversight Role is structured into three core functions, Catalyst, National Competent Authority, and Oversight

  1. Catalyst: Our catalyst role involves promoting the development and adoption of new and improved payment and security standards and solutions to improve market efficiency. We perform this role domestically and as part of the Eurosystem.
  2. National Competent Authority:Influencing policy developments, policy implementation, and execution of compliance processes in respect of relevant payment and securities regulations.
  3. Oversight:The Central Bank oversees payment systems, schemes, and arrangements operating in Ireland as well as supporting ESCB oversight of pan-European payment systems, schemes, and arrangements through participation in Joint Oversight Teams (JOTs). Additionally, the Central Bank oversees the provision of CSD services Ireland through cooperation with other competent authorities; engaging with Irish issuers and CSDs as appropriate.

Irish Government Bonds

The Payment and Securities Settlements Division also contributes to Eurosystem policy formulation on payments and securities settlements systems through the ECB's Market Infrastructure and Payments Committee and its working groups. The Division provides support to the Governor when relevant topics are discussed at the ECB Governing Council.