Ecb T2S Framework Agreement

Ecb T2S Framework Agreement

This is the cornerstone of the T2S legal framework. It defines the respective roles and responsibilities of T2S and 4CB, as well as the relationships between them and external stakeholders. In addition, the fundamental principles of the financial system, the rights of the Eurosystem with regard to the platform, the conditions of access for DTCs and the eligibility criteria for DTCs have not been defined in the euro monetary system. It was adopted by the Board of Governors on April 21, 2010. When investors buy and sell securities, security and payment must change ownership – a process called settlement-delivery of securities. TARGET2-Securities, or T2S, is a secure platform on which exchange can be done simultaneously, i.e. where delivery is possible to payment. The user requirements published on the ECB`s website define the characteristics required by DTCs and financial market players for the basic, border and neutral regulation of securities in Europe. The T2S platform can also have a positive impact on financial stability. In particular, the risks that still affect the settlement of cross-border transactions will be reduced. Thanks to its robust business continuity solution, it also reduces the risk of counterparty and settlement agents.

In addition, by promoting the efficiency and integration of European financial markets, T2S can strengthen diversification and risk sharing and strengthen the stability of the entire system. [5] With the lean T2S approach and the resulting facilitation of post-trade activities, banks will be able to streamline their back offices and achieve cost savings. As T2S will separate the settlement infrastructure from the services offered by DTCs, competition in the provision of these services will strengthen and benefit customers across Europe. [6] T2S revolutionized the settlement of securities transactions in Europe because it ended complex cross-border settlement procedures and problems caused by divergent settlement practices between countries. Due to lower billing costs, increased competition and harmonisation, T2S is expected to have a positive effect on European economic growth. The lower costs of liquidation and possibly the costs of other post-trade services should be passed on to investors. In addition, investors could benefit from more diversified bond and equity portfolios by making it easier to access securities in other EU countries and making them less expensive. In addition, issuers will have access to a more diversified investor base.

Select the authorization and interoperability tests in the “Test” section of the SSP version. Technical documentation (message layouts, etc.) is available in MyStandards and MT-X. If you do not have access to these deposits, please contact us at: For more information, please visit the European Central Bank website. T2S lays the groundwork for a single market for the settlement of securities transactions, thus contributing to greater integration of the European financial market.

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