Ten-year T2S saga comes to an end
19 Septemeber 2017 Brussels
Image: Shutterstock
The Target2-网爆吃瓜 (T2S) pan-European harmonised settlement platform is finally fully operational, as the Spanish and Baltic markets completed their migration yesterday.
Spain鈥檚 Iberclear moved to the post-trade system, along with the central securities depositories in Estonia, Latvia and Lithuania, bringing the ten-year project to completion.
The T2S platform will now settle an average of 550,000 transactions per day, according to the European Central Bank (ECB).
Wave four of the project was completed successfully on 6 February, with the addition of Clearstream Banking in Germany bringing the platform to 80 percent of the final expected volumes.
Speaking to the ECB in a MIP Online report, Indars Ascuks, associate vice president and head of the Baltic markets at Nasdaq, said: 鈥淭hanks to its interconnectivity, T2S makes cross-border settlement easier and more efficient, ensuring more integrated and cost-effective securities trading and post-trade services.鈥�
鈥淲e believe these changes will create valuable synergies for market participants, as T2S enables Baltic assets to be brought into the European pool and also makes foreign securities more accessible to Baltic investors. This will lead to an optimised market infrastructure and new business opportunities, meaning more efficiency and fewer risks to investors.鈥�
An Iberclear statement also noted that the move will allow Spain鈥檚 post-trade system to be aligned with the rest of Europe, and will 鈥渋ncrease its efficiency, optimise costs and enhance its competitiveness鈥�.
Iberclear CEO Jes煤s Benito told the ECB: 鈥淟inks with T2S CSDs鈥攚hich before migrating were complicated鈥攈ave suddenly become delivery-versus-payment links that are fully harmonised with domestic settlement procedures. We believe this is an opportunity that Iberclear has to take advantage of for the sake of its current clients.鈥�
The ECB now plans to liaise with the market to assess the functioning of the new system over the next few months.
In October 2018, settlement for the first non-euro currency is expected to become available on T2S, with Danish CSD VP 网爆吃瓜, which migrated in wave four on 6 February, settling Danish kroner.
Spain鈥檚 Iberclear moved to the post-trade system, along with the central securities depositories in Estonia, Latvia and Lithuania, bringing the ten-year project to completion.
The T2S platform will now settle an average of 550,000 transactions per day, according to the European Central Bank (ECB).
Wave four of the project was completed successfully on 6 February, with the addition of Clearstream Banking in Germany bringing the platform to 80 percent of the final expected volumes.
Speaking to the ECB in a MIP Online report, Indars Ascuks, associate vice president and head of the Baltic markets at Nasdaq, said: 鈥淭hanks to its interconnectivity, T2S makes cross-border settlement easier and more efficient, ensuring more integrated and cost-effective securities trading and post-trade services.鈥�
鈥淲e believe these changes will create valuable synergies for market participants, as T2S enables Baltic assets to be brought into the European pool and also makes foreign securities more accessible to Baltic investors. This will lead to an optimised market infrastructure and new business opportunities, meaning more efficiency and fewer risks to investors.鈥�
An Iberclear statement also noted that the move will allow Spain鈥檚 post-trade system to be aligned with the rest of Europe, and will 鈥渋ncrease its efficiency, optimise costs and enhance its competitiveness鈥�.
Iberclear CEO Jes煤s Benito told the ECB: 鈥淟inks with T2S CSDs鈥攚hich before migrating were complicated鈥攈ave suddenly become delivery-versus-payment links that are fully harmonised with domestic settlement procedures. We believe this is an opportunity that Iberclear has to take advantage of for the sake of its current clients.鈥�
The ECB now plans to liaise with the market to assess the functioning of the new system over the next few months.
In October 2018, settlement for the first non-euro currency is expected to become available on T2S, with Danish CSD VP 网爆吃瓜, which migrated in wave four on 6 February, settling Danish kroner.
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