TARGET2-SECURITIES
TARGET2-Securities (T2S) is a project of the Eurosystem, which objective is to facilitate securities settlement services in central bank money in euro, seeking synergies with other Eurosystem mechanisms and, in particular, with TARGET2 Platform.
The implementation of such a facility, which would be fully owned and operated by the Eurosystem, would potentially bring large cost savings as a result of the high level of efficiency and technical harmonisation that it would entail for market participants, and would represent a major step towards a single Eurosystem interface with the market.
T2S is a proposal for central securities depositories (CSDs) to use a common technical service that would execute settlement instructions. T2S would provide delivery versus payment (DvP) for securities against central bank money. CSDs would maintain their relationships with intermediaries, investors and issuers, as well as their asset servicing function (such as the management of corporate actions).
On March 8 2007, based on the analysis of the blueprint and feasibility study, the Governing Council concluded that T2S is feasible. It was decided to launch the next phase of the project, which objective is to prepare, in cooperation with CSDs and market participants, user requirements that the Eurosystem regards as deliverable. Therefore, on April 26, a public consultation on the general principles and the set of high-level proposals defining the nature and scope of T2S was launched.
Four Eurosystem national central banks (Deutsche Bundesbank, Banco de España, Banque de France y Banca d´Italia) are ready to develop and operate T2S.
Documentation:
26 April 2007
- T2S consultation paper: General principles and high-level proposals for the user requirements
- T2S Consultation template
- The organisation of the first phase of the TARGET2-Securities project