The insanity of Brexit continues to be underlined by the EU’s continued progress in integrating and improving the efficiency of the financial markets.
T2S is a European securities settlement engine which offers centralised delivery-versus-payment (DvP) settlement in central bank money across European securities markets. T2S has removed barriers and eliminated differences between domestic and cross-border settlement by offering a single market infrastructure solution. It allows market participants to optimise their liquidity and collateral management and also offers CSDs harmonised rules for domestic and cross-border transactions.
Yesterday the ECB announced that:
- The single European securities settlement platform TARGET2-Securities (T2S) is now fully operational. The final migration wave, with Iberclear from Spain and Nasdaq CSD from Estonia, Latvia and Lithuania, successfully implemented all migration-related tasks over the weekend of 15-17 September 2017. Having completed their first operational day on Monday, 18 September, the two central securities depositories (CSDs) can now settle all their securities transactions in euro via T2S.
- Some 20 CSDs representing 20 European markets are now linked up to T2S and can benefit from its advanced functionalities. T2S currently processes securities transactions in euro only.
TS2 was designed to function as a multi-currency platform and by the end of 2018 settlement in Danish kroner will also be possible. (ECB note that other interested CSDs and currencies are invited to join upon request.)
T2S launch supported by Swift’s VAN Solution
Target2-Securities went live on Monday and Swift's Value Added Network (VAN) Solution for T2S supported the launch.
Migration of ESES to T2S to be delayed
Migration of ESES CSDs to Target2-Securities (T2S) will be delayed, says Euroclear, with more time needed to ensure a safe and stable migration.
Target2’s turnover decreases due to TS2 and economic sluggishness
Changes in financial market infrastructure, with more migration to TS2, and slow economic growth in Europe are behind the 4.6 per cent decrease in turnover announced by Target2.