What is T2S?
T2S, which stands for TARGET2-Securities, is a European Central Bank project to standardise Europe’s clearing house infrastructure and make the post-trade network more efficient.
Where have you heard about T2S?
It’s one of the largest infrastructure projects ever launched in Europe, and designed to create a more integrated financial market across the continent. The idea was initiated in 2006, and finally went live in 2015, with the final wave of the project rolled out in 2017.
What you need to know about T2S...
The main benefit of T2S is that it will make cross-border securities settlement identical to domestic transactions in terms of cost, IT processing and efficiency. The idea is that a single set of rules and tariffs is applied to all transactions in Europe, significantly reducing the complexity of the current market infrastructure.
It’s hoped that cross-border fees will be considerably lowered, making the European securities markets more attractive to investors.
The T2S project is owned and operated by the Eurosystem, the monetary authority of the Eurozone.