30 April 2025

• Discretionary activation by the Governing Council no longer required
• Additional safeguards introduced in relation to financial soundness and sound liquidity risk management
• Changes will come into effect through the adoption of relevant legal acts in 2025, including the TARGET Guideline

The Governing Council of the European Central Bank (ECB) decided to implement changes to the dedicated Eurosystem overnight credit facility, which serves as a crisis-related liquidity backstop for eligible euro area central counterparties (CCPs) under the TARGET Guideline.¹ Currently, activation of the CCP credit facility requires a decision by the ECB Governing Council. This discretionary activation will be no longer required to ensure prompt operationalisation, meaning that the CCP credit facility will be immediately available to eligible euro area CCPs if needed.

CCPs are systemically important financial market infrastructures. Under normal operating conditions, their liquidity inflows…