June 2020: ECB T2S Annual Report 2019

Published by the ECB

Market infrastructures form the backbone of the financial system. They provide the networks through which financial institutions and financial markets are connected and financial transactions are cleared and settled. Therefore, it is essential to ensure that market infrastructures are safe and efficient, and that they support a stable and well-functioning economy. The Eurosystem is closely involved in this work, as the conduct of monetary policy depends on the availability of reliable and effective financial market infrastructures. It operates platforms for the settlement of large-value payments (TARGET2), securities (TARGET2-Securities) and instant payments (TIPS).

TARGET2-Securities (T2S) is the result of an initiative to address the highly fragmented securities settlement landscape in Europe. Launched in June 2015 as an integrated platform for processing securities against central bank money, T2S revolutionised securities settlement in Europe by bringing an end to complex cross-border settlement procedures and the difficulties caused by different settlement practices among countries.

T2S provides harmonised and commoditised securities settlement, applying a single set of rules, standards and tariffs to all participating Central Securities Depositories (CSDs). It is thus laying the foundations for a single market for securities settlement and contributing to the integration of Europe’s financial markets. Today, the T2S platform connects 21 CSDs from 20 European markets and processes around 600,000 securities transactions per day against both euro and Danish krone.

This is the ninth TARGET2-Securities Annual Report.

In addition to its standard content, the report includes three boxes, providing detailed information on topics of particular relevance in 2019. The boxes focus on changes in the statistical framework of T2S, the third Market Settlement Efficiency workshop and the CSD Regulation (CSDR)

Link: T2S Annual Report 2019