2007年-ECB欧洲央行_TARGET2-Securities_-_The_blueprint_20页_344kb

TARGET2-Securities (T2S) Blueprint Summary

Introduction

The TARGET2-Securities (T2S) project was initiated by the Governing Council of the European Central Bank (ECB) in March 2007, following a decision made in July 2006 to explore the creation of a new securities settlement service in the euro area. The project aims to enhance the efficiency and integration of EU securities settlement systems by leveraging the existing TARGET2 payment system. This document outlines a high-level blueprint for T2S, with detailed legal, operational, technical, and economic aspects to be covered in the T2S Feasibility Study.

1. Project Objectives

Key Objectives:

• Contribute to EU securities market integration: Address the fragmentation of cross-border settlement systems, which have been slower to integrate compared to national systems.
• Increase settlement efficiency: Achieve real-time settlement of securities and cash transactions, reducing costs and improving the speed and safety of transactions.
• Support a single financial market: Make cross-border securities transactions as efficient as domestic ones, thereby supporting the development of a unified euro financial market.

Benefits of T2S:

• Eliminate cost disadvantages: Cross-border settlement costs in the EU are significantly higher than in the US (19.5–35.0 € vs. 0.10–2.90 €).
• Standardise settlement processes: T2S will integrate settlement functions across multiple CSDs, allowing for real-time gross settlement (RTGS) and automated realignment.
• Promote competition: By offering a single settlement engine through multiple CSDs, T2S will foster competition and reduce infrastructure costs for market participants.
• Improve liquidity and access: Investors and issuers will benefit from more efficient access to securities and lower costs, while CSDs may gain from centralising settlement and improving their competitive position.
• Enhance Eurosystem operations: Efficient settlement will improve the use of collateral in Eurosystem credit operations, potentially leading to more rationalised and harmonised practices.

Key Principles:

• Single technical platform: Securities accounts from multiple CSDs will be managed on a single platform, alongside central bank cash accounts.
• Decentralised CSD roles: CSDs will retain their roles in managing relationships with intermediaries, investors, and issuers, as well as asset servicing.
• Non-compulsory participation: Participation in T2S is not mandatory, as the benefits depend on a critical mass of CSDs joining the project.

2. Perimeter of TARGET2-Securities

Functional Specialisation:

• Settlement: Managed by T2S, which provides a single technical platform for cash and securities settlement.
• Custody and asset servicing: Continue to be handled by CSDs, as they are critical to local market operations and legal/tax regimes.

Scope of Services:

• Assets covered: All securities with ISIN codes, including debt instruments, equities, investment funds, and warrants.
• Cross-border and foreign currency securities: Securities denominated in foreign currencies but settled in euro will also be covered, provided they are held via T2S-connected CSDs.
• Settlement types: T2S will implement an "optimised delivery versus payment (DvP)" model, combining RTGS with self-collateralisation and continuous optimisation.
• Other services: Free of payment (FOP) settlement and other necessary securities settlement types will be supported.

Operating Hours:

• Daylight and night-time settlement: T2S will align with the operating hours of TARGET2 for daylight and perform night-time settlement during the same period when TARGET2 supports ancillary systems.

Currency:

• Euro central bank money: T2S will initially focus on securities transactions settled in euro central bank money.
• Potential for other currencies: The system can be extended to support other EU currencies if there is market demand and the relevant NCB is prepared.

3. Functional Architecture

Core Functional Blocks:

• T2S Settlement Engine and Transactions Database: Handles the core settlement processes, including validation, matching, and execution.
• Dedicated sub-cash accounts in TARGET2: Used for settlement processes and managed independently by T2S.
• Securities Accounts Database: Maintains all securities accounts opened with participating CSDs.

Functional Modules:

• Validation: Ensures instructions are technically valid using CSD-specific rules from the T2S Static Data.
• Matching: Matches instructions that have not been matched at the CSD level.
• Settlement Eligibility: Determines if instructions are eligible for settlement based on deadlines and market rules.
• Instructions Maintenance: Updates parameters of instructions (e.g., prioritisation, enrichment).
• Purging: Removes settled instructions from the system at the end of the day.
• Sequencing: Creates settlement queues based on priority and optimises settlement outcomes.
• Booking: Executes final transfers of cash and securities.
• Optimisation: Identifies linked instructions for potential netting or reprocessing.
• Recycling: Resubmits failed instructions for settlement using optimisation or self-collateralisation.

Interfaces:

• Instructions Interface: Used by CSDs and some users to send and receive settlement instructions.
• Authorisations Interface: Only accessible by CSDs to authorise securities and participants.
• Accounts Balance Interface: Allows CSDs and some users to query account balances and holdings.
• Payment System Interface: Enables liquidity transfers between T2S sub-cash accounts and the main TARGET2 RTGS account.

Conclusion

TARGET2-Securities (T2S) aims to provide a unified, efficient, and competitive settlement platform across the euro area, addressing the inefficiencies of the current fragmented system. By integrating settlement functions and allowing CSDs to retain their custody roles, T2S supports both the harmonisation of cross-border processes and the continued operation of national CSDs. It is expected to significantly reduce settlement costs, improve liquidity management, and foster a more integrated financial market in the EU. The project is not mandatory, but its success depends on broad participation from CSDs and market participants.