Oversight of international systems

Abstract icon Danmarks Nationalbank contributes to the oversight by other central banks of international payment and settlement systems that are part of the Danish infrastructure. Danmarks Nationalbank participates in the cooperative oversight of the international foreign-exchange settlement system CLS and the Eurosystem's Target2 and Target2-Securities, T2S, which are used for settlement of payments in euro and securities transactions in euro and Danish kroner.

Oversight of CLS,Target2 and T2S is based on the international Principles for Financial Market Infrastructures and takes place in accordance with Danmarks Nationalbank's Policy for Oversight of the Danish Financial Infrastructure.
The Federal Reserve System is the primary oversight authority of CLS. The central banks of the currencies connected to CLS, including Danmarks Nationalbank, have joint oversight powers over CLS and participate in the CLS Oversight Committee. The cooperative oversight has been formalised in a Protocol for the Cooperative Oversight Arrangement of CLS. Danmarks Nationalbank's oversight is focused on matters of importance to the settlement of transactions in Danish kroner.

Target2 and T2S
The European Central Bank (ECB) is the primary oversight authority of 
Target2 and T2S. Danmarks Nationalbank participates in the cooperative oversight of the systems. Danmarks Nationalbank is responsible for oversight of the Danish Target2 components, including the Danish connection to the system and the national helpdesk for Danish participants. Danmarks Nationalbank participates in the oversight of T2S in line with the other central banks that are connected to the settlement platform. 

Oversight reporting

The activities in relation to current oversight of CLS, Target2 and T2S are described in the annual oversight report, Oversight of the Financial Infrastructure.