Euroclear UK & Ireland improves euro payments model
Improved euro payments model for CREST settlement service.
Euroclear UK & Ireland has launched an improved euro payments model for its CREST settlement service.
As of 9 December, settlement banks are managing their euro liquidity for CREST settlement in the TARGET2 payment system through a direct connection between the CREST system and TARGET2. The CREST system is now operating as a TARGET2 ancillary system.
The changes raise the bar in terms of the quality of Euroclear UK & Ireland’s model 1 Delivery Versus Payment (DVP) arrangements for euro settlement, placing them alongside the broadly similar arrangements which were already in place for sterling.
While the changes are largely invisible to clients using our settlement service, they deliver significant improvements to the legal and technical aspects of our euro payments model. We have worked very closely with the settlement banks and the Central Bank of Ireland to achieve this.