TARGET2-Securities: overview

Transcription

1 TARGET2-Securities: overview Infosession on T2S auto-collateralisation Patrick Van den Eynde T2S BENUG Secretary

2 Driver for T2S to stimulate the integration of the securities post-trading infrastructure in Europe Trading EUROPE BME Group BME Group Deutsche Deutsche Börse Börse N asdaq N OMX asdaq Nordic OMX Nordic MTFs e.g. Chi-x MTFs / Turquoise e.g. Chi-x / Turquoise LU S.E. LU S.E. Eur o- Next Eur o- PT, Next BE, FR, PT, NBE, L FR, N L London St London ock Exchange St ock Exchange Borsa Italiana Borsa Italiana SIX Group SIX Group UNITED STATES N YSE N YSE MTFs e.g. MTFs BATS e.g. BATS N asdaq N asdaq Clearing Eur ex Clearing Eur ex Clearing Eur o- EMCF Eur o- EMCF CCP CCP LCH.Clearnet SA LCH.Clearnet SA LCH. Clearnet LCH. Clearnet Ltd. Ltd. Cassa Di Cassa Comp Di Comp SIX -x Clear SIX -x Clear N SCC N SCC FICC FICC Securit ies Set t lem ent & A sset servicing Iber clear Iber clear Clear - str Clear eam - Banking str eam Frankfurt Banking Frankfurt Clear - str Clear eam - Banking str eam Luxemb. Banking Luxemb. VP VP CSD CSD X X Inter Bolsa Inter Bolsa Euroclear UK BE FI FR NL SE & IE Monte Titoli Monte Titoli SIS SIS DTCC DTCC FED FED Cash set t lem ent NCB NCB X X SN B SN B 2 / 14

3 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 autocollateralisation, priorisation, partial settlement,...) 3 / 14

4 What is T2S? T2S A single IT technical platform Core Neutral Borderless securities settlement Harmonised DvP in CeBM A solution to the current fragmentation An entirely new concept Reversed integrated model 4 / 14 Multi-currency dimension

5 A single IT platform for DVP settlement in central bank money SECURITIES VALIDATION and and MATCHING CENTRAL BANK MONEY TARGET2 CENTRAL BANK BANK MONEY CSD A CSD A ACCOUNTS OPTIMISATION of SETTLEMENT NCB A ACCOUNTS NCB A ACCOUNTS NCB A CSD B CSD B ACCOUNTS SETTLEMENT and REALIGNMENT NCB B ACCOUNTS NCB B ACCOUNTS NCB B CSD C CSD C ACCOUNTS NCB C ACCOUNTS CENTRAL CENTRAL BANK BANK MONEY MONEY NCB C A ACCOUNTS NCB C Other RTGS 5 / 14

6 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 6 / 14

7 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 7 / 14

8 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 8 / 14

9 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 9 / 14

10 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 10 / 14

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14 Further topics for today relationship T2S-T2 T2S auto-collateralisation functionality 14 / 14