22 November 2017
visit www.aciworldwide.com

ECB calls on depositories to join securities settlement project

23 May 2008  |  5871 views  |  0 EU flag

The European Central Bank (ECB) is calling on central securities depositories (CSDs) to sign up to Target2-Securities (TS2), its proposed integrated securities settlement system in the euro zone.

The pan-European system would connect all clearing networks in the euro zone into a single platform, extending the payments system used for central bank operations to cover securities settlements. The ECB believes an integrated securities settlement infrastructure in the euro zone could cut settlement costs by up to 90%.

Europe's banks have come out in support of the scheme, although only on condition that they get more say in the design and implementation of the system and that banks have direct access to T2S.

But the plans have come under fire from European Central Securities Depositories Association (ECSDA) as TS2 would supplant services currently provided by its members. The Federation of European Securities Exchanges (FESE) has also voiced concerns over the cost implications to its members and has called for the ECB to provide a clear business case for TS2 in order to assess the efficiency of the initiative.

Now in a bid to get more depositories on board, the ECB is providing new information for CSDs, including detailed user requirements, proposals of the legal and contractual requirements of CSDs using the system and details of the governance structure of the next phase of the project.

The ECB is also providing the results of an "economic impact analysis" which it says shows that T2S "has the potential to bring significant benefits both to securities market participants and to the European economy generally".

The central bank has called on CSDs state by 4 July 2008 whether they support T2S and intend to use the service once in operation.

The ECB's governing council is expected to make a decision on whether to proceed with the T2S project this summer. The central bank says the decision will be based on based on the full T2S 2 documentation, the level of support conveyed by CSDs, the views expressed by market participants more widely and those put forward by the Council of the European Union.

See the ECB's documentation here

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

European securities depositories to launch settlement venture

European securities depositories to launch settlement venture

01 April 2008  |  6956 views  |  0 comments
ECB consults on Target2-Securities

ECB consults on Target2-Securities

18 December 2007  |  8008 views  |  0 comments
Depositories question European Central Bank settlement plans

Depositories question European Central Bank settlement plans

02 October 2007  |  9358 views  |  0 comments
ECB pushes ahead with Target2-Securities

ECB pushes ahead with Target2-Securities

08 March 2007  |  8638 views  |  0 comments
Europe's banks lobby for greater control of ECB's Target2-Securities system

Europe's banks lobby for greater control of ECB's Target2-Securities system

26 February 2007  |  6272 views  |  0 comments
ECSDA rails against ECB's plan for pan-European settlement system

ECSDA rails against ECB's plan for pan-European settlement system

09 February 2007  |  6863 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.capgemini.comvisit www.solutions.lexisnexis.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
19981 views comments | 31 tweets | 33 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
11971 views comments | 15 tweets | 42 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
9700 views comments | 26 tweets | 38 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
9518 views comments | 16 tweets | 33 linkedin
ING brings data privacy to blockchain transactionsING brings data privacy to blockchain tran...
7045 views comments | 22 tweets | 35 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job