by addressing two aspects that are required for innovative financial services to come to fruition : 1. the underlying market infrastructure for financial services ; and 2. the founding legal frameworks necessary for developments to flourish in the payment landscape. my speech will focus on instant payments and payment initiation services. developing the eurosystem ’ s market infrastructure a sound and efficient market infrastructure is essential for the creation of an integrated financial market in europe. the eurosystem is continuously exploring ways to develop our market 1 / 4 bis central bankers'speeches infrastructure so that it meets the needs and requirements of the market. in autumn 2016 we announced the launch of an investigation into the future development of our market infrastructure. the projects that are relevant in this context are : 1. the target instant payment settlement ( tips ) service ; and 2. the consolidation of target2 and target2 - securities ( t2s ). now, half a year later, i can say that good progress has been made. tips and the consolidation of target2 and t2s are closely linked. under the assumption that the projects will get the go - ahead in the weeks ahead, target2, t2s and tips will have a modular structure with a number of common elements and centralised liquidity management. the centralised liquidity management function will bundle all the necessary features to allow participants to manage their liquidity across all eurosystem services. the account structure envisaged will allow participants to use the available payment capacity whenever one of the connected services is open for business, without the need for harmonising the operating times of the different services. a market consultation on the user requirements for these services was launched in early may and we hope for wide market participation. a market consultation on tips held earlier this year showed that there is significant interest in the topic of instant payments in general, and in particular the service that tips can potentially offer. overall, feedback on the proposed tips service was very positive. one point on which we have provided further clarification concerns the broader framework of how tips fits into the future european market infrastructure landscape, in particular as regards interaction with automated clearing houses ( achs ). the tips initiative is the eurosystem ’ s response to the increased “ speed ” which we are all experiencing in our daily lives. europeans have a growing urge to make payments instantly, just like they access music, news and traffic updates instantly. the tips initiative aims to create the infrastructure needed for the settlement of instant payments across europe. it

individuals and businesses. the eurosystem is committed to keeping pace with innovation in financial services while, at the same time, safeguarding the safety and efficiency of our financial market infrastructure. tips has the potential to be the underlying infrastructure that will facilitate instant payments across europe. it will provide the basis for innovative payment services to flourish and, in tandem with the services offered by achs, it can help foster pan - european reachability. 3 / 4 bis central bankers'speeches for psd2 to achieve its objective regarding access, innovation and a level playing field, it is important that several aspects of the legal and regulatory framework are clarified and implemented in a consistent manner – in particular when psd2 takes effect in january 2018 and the respective rts iater in 2019. in this context, the authorities should consider how the new directive and derived regulatory technical standards will work in conjunction with instant payments. moving beyond the legal requirements, i also encourage market stakeholders in the euro retail payments board to agree on the technical, operational and business requirements. the success of this endeavour can be achieved in a spirit of cooperation. thank you. 4 / 4 bis central bankers'speeches