For the purpose of monetary policy implementation within the Eurosystem, Banco de Portugal has two IT systems: SITENDER – the Tender System, and COLMS – the Collateral and Operations Management System.
SITENDER is used for the conduct of open market operations through tender procedures. It allows to:
- Consult the tender conditions;
- Participate in tenders, i.e. to report the bids received;
- Consult the tender results.
COLMS complements SITENDER with the necessary features for the management of collateral, monetary policy operations and the TARGET2-PT intraday credit line. This system allows to:
- Have access to Eurosystem standing facilities;
- Process the cash settlement of monetary policy operations in TARGET2-PT;
- Manage collateral for Eurosystem credit operations;
- Manage the TARGET2-PT intraday credit line;
- Monitor monetary policy operations, collateral and the TARGET2-PT intraday credit line.
Access to the Eurosystem’s standing facilities is subject to the subscription of the Standing Facilities Module of TARGET2.
Within the scope of collateral, Banco de Portugal has appropriate IT systems for the treatment of credit claims. This requires subscription of the respective service in BPnet, Banco de Portugal’s extranet for operational communication with the financial community.
Credit institutions have to enrol on these information systems to be eligible as counterparties to Eurosystem monetary policy operations.
Eurosystem Collateral Management System (ECMS)
In December 2017, the Governing Council of the European Central Bank (ECB) approved the development of a unified system for managing collateral and operations across the euro area: the Eurosystem Collateral Management System (ECMS).
The ECMS is scheduled to go live in November 2022 and will replace the 19 local systems of the national central banks currently in use. In the case of Banco de Portugal, the ECMS will replace COLMS (Collateral and Operations Management System).
The aim of developing the ECMS is to achieve greater operational efficiency by harmonising practices and procedures when implementing the Eurosystem legal framework for monetary policy instruments.
As with the other TARGET Services, the ECMS will be accessible through the Eurosystem Single Market Infrastructure Gateway (ESMIG).
Migration to the new system will follow a “big-bang” approach and will occur in November 2022. This means that all interaction with Banco de Portugal related to collateral and operations management will be carried out using the ECMS from the migration date onwards.
As is currently the case with COLMS, joining the ECMS is an operational requirement for institutions that wish to be eligible counterparties for Eurosystem monetary policy operations.
The national community (counterparties and central securities depository) may need to adapt its systems to interact with the ECMS. Banco de Portugal and the Eurosystem will provide relevant information to assess the need for adaptations in a timely manner. The Business Description Document (BDD) has been published so far.
Banco de Portugal will conduct tests with the national community before the migration to ensure that all relevant stakeholders are ready to migrate to the ECMS.
The new system will not alter the relationship between the counterparties and their national central banks. Banco de Portugal will remain the interlocutor of the national community on all matters relating to the implementation of monetary policy.
For further information on the ECMS, see the ECB website.