CLM

Central Liquidity Management (CLM) is the T2 component that centrally manages participants’ liquidity in central bank money.

It provides central liquidity accounts and connects them with other TARGET Services. Therefore, participants can control funds for payments, securities settlement, and instant payments from one central position.

CLM transfers liquidity between services according to defined rules. Moreover, it supports automated transfers, limits, reservations, and scheduled movements. As a result, participants can use available funds more efficiently.

It also supports central bank operations, including standing facilities and minimum reserve management. Meanwhile, the RTGS component processes individual payments.

Strict schedules, access rights, cut-off times, and contingency procedures govern all activities. Consequently, clear interfaces and reliable controls remain essential.

Centralised liquidity control improves transparency, reduces operational complexity, and supports secure settlement across TARGET Services.