TARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary Infosession on T2S auto-collateralisation
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
TARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary
Infosession on T2S auto-collateralisation
T2S overview 2 / 14
Driver for T2S to stimulate the integration of the securities
post-trading infrastructure in Europe
TradingNasdaqOMX
Nordic
NasdaqOMX
NordicMTFs e.g.
Chi-x / Turquoise
MTFs e.g. Chi-x / Turquoise LU S.E.
LU S.E.Euro-Next
PT, BE, FR, NL
Euro-Next
PT, BE, FR, NL
SIX Group
SIX Group NYSE
NYSE MTFs e.g. BATS
MTFs e.g. BATS Nasdaq
Nasdaq
EMCFEMCF Euro-
CCP
Euro-CCP LCH.Clearnet SA
LCH.Clearnet SA LCH.Clearnet
Ltd.
LCH.Clearnet
Ltd.SIX-x Clear
SIX-x Clear NSCC
NSCCClear ing
Secur it ies Set t lement
& Asset servicing
VPVP
CSDXCSDX Inter
Bolsa
Inter Bolsa
Euroclear
SISSIS
Cash set t lement
BE FI FR NL SEUK& IE
BE FI FR NL SEUK& IE
NCBXNCBX
SNBSNB
BME Group
BME Group
Iberclear
Iberclear
Deutsche Brse
Deutsche Brse
Clear-stream Banking
FrankfurtClear-stream Banking Luxemb.
Clear-stream Banking
FrankfurtClear-stream Banking Luxemb.
London Stock
Exchange
London Stock
Exchange
EurexClearing
EurexClearing
BorsaItaliana
BorsaItaliana
Cassa DiComp
Cassa DiComp
Monte Titoli
Monte Titoli
FICCFICC
DTCCDTCC
FEDFED
EUROPE UNITED STATES
T2S overview 3 / 14
Aim of T2S is to provide a single harmonised venue where
almost all securities circulating in Europe can be settled with standardised communication protocols and harmonised market practices
to lower the currently high costs of cross-border securities settlement and to bring a more general reduction in the total cost for settlement
to foster financial stability by settling in Central Bank Money
to offer a number of advanced and new facilities (optimisation functionalities like auto-collateralisation, priorisation, partial settlement, ...)
T2S overview 4 / 14
T2S A single IT technical platform
An entirely new concept
A solution to the current fragmentation
Reversed integrated model
Multi-currency dimension
Core Neutral Borderless securities settlement
Harmonised DvP in CeBM
What is T2S?
T2S overview 5 / 14
A single IT platform for DVP settlement in central bank money
TARGET2
CENTRAL BANK MONEY
VALIDATION and MATCHING
SECURITIES
OPTIMISATION of
SETTLEMENT
SETTLEMENT and
REALIGNMENT
CENTRAL BANK MONEY
CSD A
CSD B
CSD C
NCB A
NCB B NCB B ACCOUNTS
NCB A ACCOUNTS
NCB C CENTRAL BANK
MONEY
NCB A ACCOUNTS
Other RTGS
TARGET2 VALIDATION and MATCHING
SECURITIES
OPTIMISATION of
SETTLEMENT
SETTLEMENT and
REALIGNMENT
CENTRAL BANK MONEY SECURITIES
OPTIMISATION of
SETTLEMENT
SETTLEMENT and
REALIGNMENT
SECURITIES
OPTIMISATION of
SETTLEMENT
SETTLEMENT and
REALIGNMENT
CENTRAL BANK MONEY
CENTRAL BANK MONEY
NCB B ACCOUNTS
NCB A ACCOUNTS CSD A
CSD B
CSD C
CSD A
CSD B
CSD C
CSD A ACCOUNTS
CSD C ACCOUNTS
CSD B ACCOUNTS
NCB A
NCB B
NCB A
NCB B NCB B ACCOUNTS
NCB A ACCOUNTS
NCB C CENTRAL BANK
MONEY
NCB A ACCOUNTS
Other RTGS
NCB C ACCOUNTS NCB C NCB C ACCOUNTS
Other RTGS
CENTRAL BANK MONEY
CENTRAL BANK MONEY
T2S overview 6 / 14
T2S as a single Settlement platform CSDs participating in T2S will outsource their
securities accounts to the single platform CSDs remain legal owner of these accounts
and stay responsible for customer relations NCBs will create and hold Dedicated Cash
Accounts (DCA) for their payment banks on the same technical platform
settlement of Delivery-versus-Payment on T2S will take place by simultaneously adapting securities accounts and DCA
T2S overview 7 / 14
Expected results of T2S reduction of settlement costs banks can centralise back-office operations banks can optimise liquidity (one DCA for
settlement in all T2S CSDs) and collateral management
efficiency gains thanks to market practices harmonisation triggered by T2S (single settlement schedule, single calendar, single set of matching standards, common standards for corporate actions processing, ...)
increased competition between CSDs and intermediaries
T2S overview 8 / 14
Broader perspective
Europe will become a better place to invest issuers will benefit from a more diversified
investor base securities markets will become more liquid and
more attractive
T2S overview 9 / 14
T2S Governance owned by the Eurosystem and technically on
the same platform as TARGET2 is being developed on the foundations that
have been laid by market participants (User Requirements Document)
strategic decisions by ECB Governing Council conduct of the project by the T2S Programme
Board development by 4CB user forums: T2S Advisory Group (CSDs,
NCBs, future end users), National User Groups
T2S overview 10 / 14
T2S Contractual Relationship with CSDs
CSDs that signed the Framework Agreement on 8 May: Bank of Greece Securities Settlement System - BOGS (Greece) Clearstream Banking AG (Germany) Depozitarul Central (Romania) Iberclear (Spain) LuxCSD S.A. (Luxembourg) Monte Titoli S.p.A. (Italy) National Bank of Belgium-Securities Settlement System NBB-SSS
(Belgium) VP LUX S..r.l. (Luxembourg) VP Securities A/S (Denmark)
non-euro NCBs are invited to sign the Currency Participation Agreement
T2S overview 11 / 14
T2S overview 12 / 14
T2S overview 13 / 14
T2S overview 14 / 14
Further topics for today
relationship T2S-T2 T2S auto-collateralisation functionality
TARGET2-Securities: overviewDriver for T2SAim of T2S isWhat is T2S?A single IT platform for DVP settlement in central bank moneyT2S as a single Settlement platform Expected results of T2SBroader perspectiveT2S GovernanceT2S Contractual Relationship with CSDsSlide Number 11Slide Number 12Slide Number 13Further topics for today
Related Documents
