Securities Financing Industry News | Euroclear Bank joins the ECB’s T2S settlement system

Euroclear Bank, the Brussels-based international central securities depository, to join the TARGET2-Securities (T2S) settlement system of the European Central Bank (ECB), following an agreement signed with the ECB and banks Eurosystem central units on December 21.

TARGET2-Securities offers centralized settlement in central bank money on the European securities markets.

By connecting to the T2S platform, Euroclear Bank customers will have the choice between settling in euros in commercial bank money and / or settling in euros in central bank money.

This, according to Euroclear, will allow them to further optimize their liquidity management and reduce their funding costs.

By adding central bank money settlement in euros to its service offering, Euroclear Bank will provide clients with access to a single pool of liquidity and collateral in multiple currencies and jurisdictions.

Customers will also continue to benefit from asset protection and existing service levels for collateral management and asset servicing.

Euroclear Bank’s connection to T2S supports the further integration of European capital markets into a true single market, adds Euroclear.

Ulrich Bindseil, Managing Director, Market Infrastructures and Payments, European Central Bank comments: “I welcome Euroclear Bank’s decision to join the T2S platform and our journey towards European financial integration and a single capital market. By settling securities in central bank money via T2S, Euroclear Bank can offer its clients access to the single liquidity pool of the Eurosystem’s TARGET services for collateral, payments and securities settlement.

Lieve Mostrey, CEO of Euroclear Group, said: “We are very pleased to have taken this important step with the ECB as we work together to establish a more holistic, efficient and robust European settlement landscape, aligned with the objectives of the European Capital Markets Union. The agreement signed today represents an important step in providing further support to the EU’s ambitions to strengthen the international role of the euro. “

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