Euroclear Bank Ties with ECB' s TARGET2-Securities Platform

Euroclear Bank, the Brussels-based international central securities depository (ICSD) , announced today that it has joined the ECB's TARGET2-Securities (T2S) settlement system by signing an agreement with the European Central Bank (ECB) and the central banks of the euro area. 

TARGET2-Securities is a safe platform where the exchange can happen simultaneously, i.e. where delivery versus payment is possible, which offers centralized settlement in central bank money across European securities markets.

According to Euroclear Bank, by connecting to the T2S platform, its clients will have the choice between Euro settlement in commercial bank money and/or Euro settlement in central bank money, which will allow them to further optimise the management of their liquidity and reduce their financing costs. In addition, clients of the Bank will have access to one single pool of liquidity and collateral, across numerous currencies and jurisdictions. Asset protection and high-quality service levels in collateral management and asset servicing will continue to be available to clients. 

For the European capital marketplace, the connection of Euroclear Bank to T2S contributes to the ongoing integration of the marketplace into a true single market. T2S is an integrated settlement model for Europe, aiming to reduce European fragmentation and make central bank money securities settlement more efficient by helping to reduce risk and increase liquidity, as well as making a more attractive European capital marketplace.

​Fazzaco has learned that 20 European countries currently use T2S while Euroclear Bank is the first international central securities depository to join the platform. Beside T2S and the the other TARGET services, the Eurosystem also engages in a number of initiatives which aim to promote efficiency and innovation and ultimately achieve greater integration in financial markets in Europe.