The correspondent central banking model (CCBM) was introduced by the Eurosystem at the start of Stage Three of Economic and Monetary Union (EMU) in January 1999. Its main purpose is to ensure that, in principle, all marketable and non-marketable assets eligible for use in Eurosystem credit operations (i.e. monetary policy operations and the provision of intraday credit to facilitate the settlement of transactions in TARGET2 and TARGET2-Securities) are made available to all its counterparties, regardless of where the assets or the counterparty are situated.
Counterparties are under no obligation to use the CCBM if there is an approved alternative. All eligible assets may be used cross-border by means of the CCBM and, in the case of marketable assets, also through eligible links between SSSs in the Europe an Economic Area (EEA).
Links between securities settlement systems (SSSs) in various countries have been established for some time. Insofar as the European Central Bank’s (ECB) Governing Council has deemed such links eligible for use in Eurosystem credit operations, they represent a valid alternative to the CCBM. In addition to the standard CCBM, it has also been possible since May 2014 for Eurosystem counterparties to use the aforementioned links in combination with the CCBM for the purposes of Eurosystem credit operations (CCBM with links). In addition, triparty collateral management services offered by triparty agents (TPAs) on a cross-border basis have been supported via the CCBM (triparty CCBM) since September 2014, subject to the respective triparty agents having been approved as eligible for use in Eurosystem credit operations.
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