The pan-European settlement platform TARGET2-Securities (T2S) is gaining momentum, Clearstream says in its latest monthly report.
“T2S is a fundamental shift in European capital market structure,” Tessler stated. According to him, T2S presents opportunities to do business in a radically new and cost effective manner. This seems to be acknowledged by the finance industry. According to a study conducted by Accenture and Clearstream, asset servicing is a key strategic component of banks’ T2S strategies. In this survey, the importance of asset servicing was rated on average as eight on a scale of one to ten, clearly indicating the focus on asset servicing in a T2S context. Another finding of the study is that 90 percent of banks declare themselves ready and well prepared for T2S, and are confident in their overall operational strategy. The benefits of T2S highlighted by survey respondents include liquidity management, followed by settlement processing, collateral management and network rationalisation. Clearstream will migrate to T2S in February 2017 during wave four. Afterwards customers will benefit from economies of scale and netting opportunities by consolidating all T2S-eligible assets at Clearstream, which describes itself as the largest T2S participant.