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use of SWIFTNet Single Window 9<br />
now also facilitates liquidity management<br />
in real time and the secure<br />
transmission of data files on top of financial<br />
transaction messaging.<br />
After the Electronic Banking<br />
Communication system EBK 10 had<br />
been replaced by SWIFTNet FIN in<br />
November 2003, the number of messages<br />
processed by the OeNB more<br />
than quadrupled. In <strong>2004</strong>, AustriaÕs<br />
transaction growth rate of 32.4%<br />
was the highest worldwide. In terms<br />
of total messaging volume, Austria<br />
is ranked 18 th in an international comparison.<br />
TARGET2 — Austria in<br />
Favor of Standardization of<br />
Large-Value Payments<br />
In 2002, the Governing Council of<br />
the ECB laid the foundation for todayÕs<br />
integration via an interlinking<br />
system of the RTGS systems operated<br />
by national central banks in the<br />
EU. Compared with the existing<br />
TARGET system, the next generation,<br />
TARGET2, will offer an extended<br />
core service that has been<br />
harmonized across Europe as well as<br />
a single price structure for national<br />
and cross-border payments effected<br />
in the entire Eurosystem. Connecting<br />
the most important European ancillary<br />
systems to TARGET2 via two<br />
real-time and four batch-processing<br />
models is another milestone in the<br />
harmonization and integration of payments<br />
in the euro area.<br />
In December <strong>2004</strong>, the Governing<br />
Council of the ECB approved<br />
the establishment of a Single Shared<br />
Platform (SSP) for TARGET2 on<br />
Integration of Payment Services in Europe and Consolidation<br />
of Cash Distribution Structures in Austria<br />
the basis of the joint offer made by<br />
the Deutsche Bundesbank, the Banca<br />
dÕItalia and the Banque de France.<br />
The OeNB expressed its interest in<br />
participating to the ECB as early as<br />
August 2003 and notified the ECB in<br />
January 2005 of its intent to use the<br />
coreserviceoftheSSP.TheOeNB<br />
anticipates that TARGET2 will process<br />
large-value euro payments in real<br />
time more efficiently compared with<br />
todayÕs (decentralized) TARGET system.<br />
In <strong>2004</strong>, the TARGET2 project<br />
team focused on the identification<br />
of the systemÕs functionality in cooperation<br />
with the European financial<br />
sector as well as on the technical development<br />
of the SSP. The Governing<br />
Council adopted the General Functional<br />
Specifications (GFS) for TAR-<br />
GET2 in July <strong>2004</strong>. The User Detailed<br />
Functional Specifications<br />
(UDFS) are likely to be finalized in<br />
April 2005.<br />
TARGET2 will offer comprehensive<br />
liquidity management functions<br />
that allow banks operating in several<br />
European countries to better control<br />
9 Unlike in the past, when differing data formats, interfaces, security models and telecommunication networks<br />
were used to communicate between different counterparties and market infrastructures, financial market<br />
participants today may exchange information via a standardized (uniform) network using a single<br />
communication window.<br />
10 Proprietary Austrian system for the transfer of payment orders.<br />
Single Shared<br />
Platform for<br />
TARGET2<br />
Functional TARGET2<br />
specifications<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2004</strong> ×<br />
53