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History T2S

Logo of T2S

The objective of the Eurosystem’s TARGET2-Securities (T2S) is to establish a common securities settlement platform.

TARGET2-Securities is based on the TARGET2 platform. T2S operates on a centralized engine enabling harmonized clearing and settlement services of securities in euro and in other currencies providing interest of non-euro area central banks.

In T2S as a single platform for settling both cash and securities transactions in central bank money are centrally managed the cash accounts and the securities accounts. The provision and management of liquidity on cash accounts in T2S is under the responsibility of payment banks (including settlement banks). Liquidity used for securities settlement in T2S is transferred from accounts held in RTGS systems of national central banks. For euro it is TARGET2.

T2S is only a settlement service for all types of securities. That means that custody and other services remain to be performed by central securities depositories. CSDs are the gateways through which market participants are able to access T2S services. Participants continue to contract with one or more CSDs for the settlement of securities eligible and collateral operations for such settlement. Moreover the CSDs – not market participants – contract with the Eurosystem for T2S services. Each CSD is invited to agree to move its settlement to T2S and offer its clients borderless settlement of trading and collateral operations.

T2S was designed and is operated by Deutsche Bundesbank, Banca d´Italia, Banque de France a Banco de Espana (4CB) on behalf of Eurosystem. Involving national market participants into the development of T2S was via National User Groups (NUG-s). In Slovakia was established NUG-SK. Subsequently AMI-SeCo NSG-SK was established in Slovak Republic in September 2017 as follower of NUG-SK to cover also collateral management issues and new Eurosystem projects issues.

The Eurosystem´s T2S initiative started in 2006 with its feasibility study. It was followed by precise setting of user requirements, which were included in User Requirements Documentation. After the specification, development and testing phase was T2S opened for production in June 2015. The migration to T2S was divided into 5 waves according to the Programme Plan. Successful migration of fourth migration wave included Slovak market was completed on 6 February 2017. Last migration wave was successfully completed in September 2017.

Useful links:

http://www.ecb.int/paym/t2s/html/index.en.html