T2S implementation has been delayed

Target2 Securities (T2S) project was released by European Central Bank (ECB) to simplify cross border securities exchange. The project realization can be made of the following way by the joined counties central securities depositories (CSD):

·            Extend the current set-up with T2S platform

·             Full integration of system with T2S to enhance efficiency

The fist way is carry out fast and doesn’t need big investment, but do not really solve that problem of what the T2S called alive by ECB, because process duplication still remain in cross border securities exchange process. The second solution is apparently better for long term, and has ECB’s support. But carry out that solution is more expensive. Furthermore CDSs fells that T2S implementation cause remarkable income loss.

Negotiation is still ongoing so ECB decided to shift T2S implementation to 2015. Being the biggest beneficiary of the T2S project, global custodians is become disappointed by the decision. To them T2S significantly simplify the European securities trading and considerably reduce their costs.

Author: Vilmos Levente Kovacs (mt2mx)