Target 2 Securities

T2S in short


T2S stands for Target 2 Securities and is a European Central Bank (ECB) project aiming at centralising the Settlement operations in the post trade value chain for nearly all securities on a single pan-European platform. Thus, it aims at offering to the European market centralised delivery-versus-payment (DvP) settlement in central bank money. T2S has started to go live in 2015 for some actors and will dramatically reduce Settlement costs.

This single platform is to be operated by the European Central Bank, which invites Central Security Depositaries (CSD) in Europe to outsource their Settlement operations to the ECB. T2S could be described as large-scale IT outsourcing which will contribute in reducing the cost of cross-border Settlement in Europe.

General Principles and Objectives in T2S

In order to reach an efficient cross-border Settlement in Europe, the T2S project applies 19 General Principles developed conjointly with the market. It notably makes cross-border settlement identical to domestic settlement regarding costs, technical processing and efficiency. As such, a single set of rules, standards and tariffs will be applied in Europe for settlement.

The objective of T2S is thus to facilitate cross-border settlement and its efficiency. As such, transactions in T2S will be final and safe. First, by using DvP on a real-time gross basis it will eliminate the counterparty risk. Indeed it will participate in ensuring that a participant’s counterparty fulfils its obligations. Then, by using central bank money, i.e. the transfer of cash between participants’ accounts held at the respective national central banks, it will eliminate the settlement agent risk.

T2S and the CSDs

The T2S system is a service toward Central Securities Depositaries (CSD) and not a CSD. As such, the T2S is oriented toward CSD who will be the only parties involved in a contractual relation with the ECB. CSD will remain responsible for the relations with their clients. Except from the settlement, all the other post-trading value chain activities will still be operated by CSDs, like custody, asset servicing, corporate actions processing, tax and regulatory reporting.

T2S in Luxembourg – Migration phase

In Luxembourg, two CSDs will migrate to the T2S platform: VP Lux on the 12 September 2016 and LuxCSD on 6 February 2017. Some European CSDs have already migrated and others will in the upcoming phase.

Wave 1
22 Jun 2015 – 31 Aug 2015
Wave 2
29 Mar 2016
Wave 3
12 Sep 2016
Wave 4
6 Feb 2017
Final wave
18 Sep 2017
Bank of Greece Securities Settlement System (BOGS) Interbolsa (Portugal) Euroclear Belgium Centrálny depozitár cenných papierov SR (CDCP) (Slovakia) Baltic CSDs (Estonia, Latvia, Lithuania)
Depozitarul Central (Romania) National Bank of Belgium Securities Settlement Systems (NBB-SSS) Euroclear France Clearstream Banking (Germany) Euroclear Finland
Malta Stock Exchange Euroclear Nederland KDD – Centralna klirinško depotna družba (Slovenia) Iberclear (Spain)
Monte Titoli (Italy) VP Lux (Luxembourg) KELER (Hungary)
SIX SIS (Switzerland) VP Securities (Denmark) LuxCSD (Luxembourg)
Oesterreichische Kontrollbank (Austria)
T2S Migration Plan © The European Central Bank

T2S governance

Luxembourg is involved in the T2S development and governance. Luxembourg is represented in the T2S Advisory Group, on a case-by-case basis in T2S working groups, in the T2S Board and in the ECB Governing Council. The ABBL, has been following the T2S initiative, and is actively involved in the T2S National User Group (NUG).

The current landscape of EU settlementThe future landscape with T2S

T2S and Beyond

  • Official documents are accessible via the ECB website
  • T2S Harmonisation: going beyond the T2S platform, harmonization in the post-trade area is sought by the ECB and the European Authorities. Thus, an harmonisation agenda has been developed in order to foster harmonization of rules and process for post-trade activities (single rulebook, financial integration,…).


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