MNI BRIEF: ECB Delays Collateral Management System Launch

The European Central Bank. along with other Eurosystem members, is delaying the launch of the new Collateral Management System (ECMS) until April 2024, it said. The system was expected to be operational by November 2023.

In a statement Friday, the ECB said "additional time will help mitigate any impact from the rescheduled T2 launch".

The ECMS will be a unified system for managing assets used as collateral in Eurosystem credit operations, replacing the existing individual systems of the euro area national central banks. It is expected to help counterparties and the market at large by harmonising collateral management practices. New management tools could, at least at the margins, help with shortages in collateral in money markets, an issue that has dogged fixed income markets in recent months. ( MNI INTERVIEW2:ECB Has Done Enough For Collateral Squeeze-Lane)