The European Association of CCP Clearing Houses (EACH) has weighed in on the European Central Bank’s consultation about extending operating hours for Target2. In its response, the association signals that the industry is open to longer availability of the eurozone RTGS, but warns that the shift needs to be practical, predictable, and phased.
EACH supports longer hours for both RTGS and CLM, but pushes back on the idea of full 24/7/365 operations. A weekday-plus-public-holidays model would be more workable for clearing members, it argues. As a more immediate fix, the group points at the long-criticised 18:00 CET maintenance window. Moving this out of the core clearing period would already relieve pressure for CCPs managing late-day margin flows.
A bottleneck
The current 18:00–19:30 CET downtime, EACH notes, is precisely when CCPs may need access to euro liquidity most, especially under T+1 and during market swings. That temporary blackout can force participants into workaround funding in other currencies, adding cost and operational risk. Extending hours, or at least removing the clash with peak activity, could ease those strains.
The association also links longer Target2 hours to the broader global payments agenda. Faster, more predictable settlement windows support the G20’s cross-border payments objectives. And for markets like energy, later euro cut-offs could make it easier for participants to use the currency for margin payments rather than turning to alternatives.
Two years to adapt
EACH advocates a gradual rollout, proposing a transition period of at least two years so firms can align systems and processes with the wider TARGET framework. A phased approach, it argues, would help avoid unnecessary disruption as operating hours stretch.
