Brussels
14 September 2016
Reporter: Stephanie Palmer

T2S on a roll with wave-three success


Wave-three participants have successfully migrated to the TARGET2-Securities (T2S) pan-European securities settlement platform.

Euroclear’s Settlement of Euronext-zone Securities (ESES) CSDs—those in Belgium, France and the Netherlands—along with VP Securities in Denmark and VP LUX in Luxembourg, are all now up and running on the single platform.

This means that the T2S platform is now processing 45 percent of the total transaction volumes expected by the time migration is completed in 2017.

This latest wave represents the halfway point of the migration programme, intended to improve efficiency in in cross-border settlement in Europe. The first wave of CSDs went live on the platform on 22 June 2015, while wave two went ahead without a hitch in March this year.

The Euroclear ESES CSDs were originally scheduled to join the platform in wave two, but delayed the move, citing early processing challenges and requesting more time to prepare. At the time, Euroclear suggested that the complications were already under control, but had slowed the process so far.

Tim Howell, CEO of the Euroclear group, commented on the eave three migration, saying: “The T2S project is a significant undertaking for Europe’s financial community, bringing many opportunities for cross-border trading and enhanced liquidity management.”

He added: “Reaching this milestone has taken tremendous motivation and commitment by many people at Euroclear and by our client community, and I would like to thank them for their efforts.”

In a statement on the migration, VP called the project the biggest in its history, “in terms of both value and significance”. The statement added that VP has invested DKK 300 million (€40.3 million) in adjusting the VP Securities systems to access the platform.

VP Securities is settling euro-denominated issues on T2S. However, VP intends for the CSD to be the first to offer settlement in an alternative currency, with plans to settle DKK on the platform in 2018.

Niels Olsen, CEO of VP Securities, said: "As a CSD we're fully aware of the importance of an integrated European financial market. This made it natural for VP to be part of T2S, even though Denmark is not in the Eurozone.”

He added: "Harmonisation via the T2S project is one of the most important reasons for our participation. This harmonisation creates a level playing field for all CSDs, ensuring fair competition."

Wave four of the migration is scheduled for 6 February 2017, and the project is scheduled to be completed with a final wave in September 2017.

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