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On 19 May 2008, Denmark migrated to the new trans-European payment system for settlement of large, time-critical payments in euro, TARGET2. Like the legacy TARGET system, the new system will be used by EU banks and settlement systems to exchange payments.
The new system offers users a modern, state-of-the-art payment system. Due to the systemic importance of TARGET2, great significance has been attached to ensuring that it meets the Eurosystem's requirements for business continuity in payment systems.
Denmark has chosen to join TARGET2 since considerable payments in euro take place between Denmark and the euro area via Danish credit institutions. The terms and conditions for Danish participants remain unchanged. Denmark is still subject to the current restrictions for non-euro area EU member states, including lack of access to euro liquidity overnight.
TARGET2 is based on a shared technical infrastructure (Single Shared Platform), while account and business relations with participating banks will still be undertaken by Danmarks Nationalbank. Danish banks and settlement systems, VP Securities Services and PBS that participate in TARGET2 have their accounts in euro in TARGET2, where all payments in euro are settled.
For further information on TARGET2, see the in-depth description 'Denmark migrates to TARGET2' (only in Danish)
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