TARGET2 Securities Goes Live in Four European Markets

The European Central Bank (ECB) said that the first stage of its new settlement platform TARGET2 Securities, aka T2S, has successfully launched.

Four securities depositories and their users are now connected to T2S: the Bank of Greece’s depository for government bonds (BOGS); the depository of the Malta Stock Exchange; Romania’s Depozitarul Central; and SIX-SIS of Switzerland.

The new harmonised system will eventually roll out to 21 countries in Europe by February 2017, covering almost 100% of securities transactions in euros.

“This is a tangible step forward for financial integration in Europe”, said Yves Mersch, ECB executive board member. “After seven years of hard work to make this happen, T2S will benefit people in 21 countries and will support the creation of a true single capital market in Europe.”

Commenting on the launch, Alan Cameron, head of relationship management for international banks and brokers at BNP Paribas Securities Services, said: “T2S is a game changer for European settlements. It is a major upgrade of Europe’s settlement system and unifies all processes for central bank money settlement.

“This strengthens European capital markets, introducing harmonisation and efficiency as well as huge benefits to the flow of liquidity, which creates a more robust settlement environment.

“The benefits of T2S are numerous. For example it allows participants in European financial markets to simplify processes, in particular for cross-border settlement, and build economies of scale. Also the auto-collateralisation function that T2S brings will make the markets more robust in the future.

“All this should help Europe’s post-trade market to be more efficient and therefore help our capital markets to be more efficient. So in the long-term it should be a great benefit for European financial markets.”


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