T2S Project Structure
T2S is a centralized settlement platform designed by the ECB that aims at providing CSDs across the European Union with a harmonized settlement service. T2S will ensure real-time DvP in Central Bank money and settle across borders by employing the so-called “integrated model”. Both cash and securities will be required to be integrated on one single IT platform. It will be necessary that:
- CSDs outsource their securities account in T2S, but will remain responsible for the legal and business relations with their clients.
- National Central Banks create specific Dedicated Cash Account (DCA) where users can exchange liquidity with the payment system (T2 for EUR).
T2S service offering
- Cash and securities account management
- Multicurrency management, not only EUR
- Transaction lifecycle management, from validation to settlement
- Matching and related functionalities, such as the Hold/Release mechanism
- Auto-collateralization, both ‘on stocks’, using securities already available on the accounts, and ‘on flows’, using the securities of the transaction to be settled Information services
So far 23 European CSDs have committed to joining T2S across four separate migration waves in order to limit market disruptions. globeSettle, through Monte Titoli, will enter the First Migration Wave, on June 2015.