Target2-Securities (T2S) will be the new centralised settlement platform for securities, developed and operated by the Eurosystem, created to provide settlement services for any type of transaction in Central Bank money. The system is currently scheduled to go-live on 22nd June 2015.
It aims to create an efficient single European capital market through the integration of existing platforms (TARGET2).
T2S will contribute to the redesign of the European post-trade landscape, by means of:
- Centralised settlement of financial transactions:
Removal of the differences between domestic and cross-border settlement
Reduction in collateral and liquidity needs - Direct link to the platform for its participants:
Direct account management by users - Harmonisation:
Definition of new standards, not limited to the settlement system
Progressive abolition of domestic specificities - Promotion of Competition:
Settlement becomes a commodity
Clear distinction between settlement and custody
So far 30 European CSDs have expressed interest in being part of the project; the migration process from current domestic settlement platforms to T2S will be carried-out in several phases: the first (wave 1) is scheduled for June 2015.
In the path through T2S, Monte Titoli pursues two main goals:
- Helping our financial community to seize new business opportunities
- Minimising impact of change on clients. We are working to identify the most efficient ways to maintain and reutilise, where possible, existing interfaces and communication protocols.