YOU ARE DOWNLOADING DOCUMENT

Please tick the box to continue:

Transcript
Page 1: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

TARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary

Infosession on T2S auto-collateralisation

Page 2: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-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 Börse

Deutsche Börse

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

Page 3: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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, ...)

Page 4: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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?

Page 5: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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

Page 6: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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

Page 7: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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

Page 8: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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

Page 9: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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

Page 10: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

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.à.r.l. (Luxembourg) ● VP Securities A/S (Denmark)

► non-euro NCBs are invited to sign the Currency Participation Agreement

Page 11: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

T2S overview 11 / 14

Page 12: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

T2S overview 12 / 14

Page 13: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

T2S overview 13 / 14

Page 14: Patrick Van den Eynde T2S BENUG Secretary - nbb.be · PDF fileTARGET2-Securities: overview Patrick Van den Eynde T2S BENUG Secretary . Infosession on T2S auto -collateralisation

T2S overview 14 / 14

Further topics for today

► relationship T2S-T2 ► T2S auto-collateralisation functionality


Related Documents