The STEP2 CC System is supported by the STEP2 platform which is one of the key clearing and settlement mechanisms in the Single Euro Payments Area (SEPA), both in terms of processing volumes and participating institutions. The STEP2 platform provides a state-of-the-art and network-independent processing engine, which is based on global XML-based ISO standards.
The STEP2 platform is a highly resilient processing system with full disaster recovery sites and features and operational procedures that are regularly tested with the user community. It provides the following key benefits:
- a scalable processing engine
- a highly experienced technical operator (SIA)
- secure settlement in TARGET2
- three processing sites
- three operations centres for system monitoring running in parallel mode
- customer support for operational queries and emergency situations
- crisis simulation exercises
- ISO 27001 certification
The platform also ensures full straight-through processing of all transactions in the interbank space and offers its users the most advanced standard functionality based on the latest technology:
- 24-hour file sending
- several same-day and optional night-time settlement cycles
- payment cancellation and recall functionality
- network independence: direct participants can connect to the STEP2 central system through SWIFTNet, SIANet and/or EBICS
- machine-readable routing tables
- interactive workstation
- reconciliation reports and statistical data
The STEP2 CC system is included in the ESMA list of designated payment and securities settlement systems under the Settlement Finality Directive and is held to the Eurosystem applicable oversight requirements.
As there is no need for collateral, there are no additional costs for users participating in the STEP2 CC System.
Another non-negligible benefit of the STEP2 CC system is that it is extremely liquidity efficient through the use of multilateral netting.