2007年-ECB欧洲央行_TARGET2-Securities_progress_report_17页_472kb

T2S Progress Report Summary

Introduction

On 8 March 2007, the ECB Governing Council approved the feasibility of TARGET2-Securities (T2S) and initiated the definition of user requirements. A public consultation was launched on 26 April 2007, with the goal of gathering feedback on the general principles and high-level proposals. The consultation received 57 responses, with a significant number coming from associations and groups, indicating broad market involvement. The ECB's T2S project team and the T2S Advisory Group (AG) worked to refine and clarify the principles and proposals based on the feedback.

I. Outcome of the Public Consultation

I.1 Remarks on the T2S Principles

• Principle 2: T2S will be based on the TARGET2 platform, ensuring the same levels of availability, resilience, recovery time, and security. The term "T2S on T2" was clarified as an open concept, not imposing constraints on user requirements.
• Principle 5: T2S will provide at least the same level of settlement functionality as today, without reducing it. However, it may not cover all services currently offered by CSDs if they are not core functionalities.
• Principle 11: T2S will allow users to have direct connectivity, which means CSDs retain their business and legal relationships with participants. The term "direct connectivity" was preferred over "direct access."
• Principle 16: CSDs connecting to T2S will follow a single calendar and harmonised opening and closing times for settlement business. CSDs that close on national holidays must still provide a minimum level of service.
• Principle 19: T2S will be compatible with the European Code of Conduct for Clearing and Settlement, particularly regarding price transparency, unbundling of services, and accounting separation.

I.2 Comments on the T2S Proposals

• Positive Feedback: 65% of responses expressed full agreement with the proposals, indicating strong market support.
• Disagreements: About a quarter of responses either partially or completely disagreed with the proposals, necessitating further review by the AG.
• Key Agreements:
  • Settlement of the cash leg of T2S should be on T2S dedicated cash accounts, not the general TARGET2 RTGS account.
  • The T2S interface will be based on the ISO 20022 standard, which is expected to be released in 2010.
  • Efficiency was prioritised over minimising market impact in the harmonisation and standardisation of T2S.
• Open Proposals: Two proposals on night-time settlement and central matching remained open for further discussion at the AG meeting in October 2007.

II. Progress in the Different T2S Work Streams

2.1 Definition of the User Requirements

• The AG and six TGs have been working since early 2007 to define the user requirements.
• Seven "mini-consultations" were conducted with National User Groups and European associations to gather market input.
• The T2S project team held information sessions in June and August 2007 to ensure transparency.
• The three-week window for mini-consultations was extended by two weeks during the summer period to accommodate market feedback.

2.2 Economic Impact Analysis

• The initial economic feasibility analysis estimated one-off costs at €200 million and annual benefits exceeding €225 million for the financial industry.
• Market participants, especially CSDs, requested a microeconomic analysis, which was initiated by the Eurosystem.
• A methodology for calculating economic effects was discussed at the AG meeting in October 2007.

2.3 Legal Preparations

• Legal work is being carried out by the ECB's DG Legal Services in coordination with the T2S project team and LEGCO.
• The legal framework is being developed based on the ECB Governing Council's decisions from March and April 2007.
• No major legal obstacles have been identified, though some secondary regulations may need adaptation.

2.4 Possible Future Governance of T2S

• The current governance structure, with 68 participants, is becoming unsustainable due to the increasing number of stakeholders.
• The AG and PSSC are discussing the future governance structure, with a proposal expected to be submitted to the Governing Council in early 2008.
• The new governance structure is intended to ensure efficient decision-making and stakeholder involvement.

III. Finalisation of the User Requirements Phase

• The TGs are finalising their contributions to the User Requirements Document.
• An initial discussion of the document took place during the AG meeting in October 2007.
• Final approval is expected during the AG meeting in November 2007.
• The document will be submitted to the ECB's decision-making bodies and released for a three-month public consultation starting in December 2007/January 2008.
• Finalisation of the user requirements is anticipated by spring 2008.

IV. Market Support for T2S

• Most banks and custodians support T2S due to expected cost savings and efficiency improvements.
• CSDs remain cautious but continue to provide constructive feedback.
• The Eurosystem is working to understand CSDs' concerns and ensure their commitment to the project.
• CSDs' future involvement in T2S governance is expected to influence their level of support.

V. Conclusion

• The T2S project is progressing rapidly in all areas, as per the project plan.
• The public consultation provided valuable input, which has been integrated into the draft user requirements.
• Despite strong commitment from most stakeholders, CSDs still have reservations. The Eurosystem is addressing these through further analysis and discussions.
• The final version of the T2S general principles has been agreed upon and will serve as the basis for the user requirements.

Core Principles of T2S

• Principle 1: T2S is fully owned and operated by the Eurosystem.
• Principle 2: T2S will be based on the TARGET2 platform.
• Principle 3: T2S is a technical platform, not a CSD.
• Principle 4: Securities accounts remain legally attributed to each CSD.
• Principle 5: T2S will provide harmonised settlement functionality.
• Principle 6: Securities account balances will only be changed via T2S.
• Principle 7: Participating CSDs must be designated under the Settlement Finality Directive.
• Principle 8: Settlement will be exclusively in central bank money.
• Principle 9: The primary focus is on euro settlement.
• Principle 10: T2S is technically capable of settling in non-euro currencies.
• Principle 11: Users will have direct connectivity to T2S.
• Principle 12: Participation in T2S is not mandatory.
• Principle 13: All CSDs settling in euro central bank money are eligible to join T2S.
• Principle 14: All CSDs will have equal access conditions.
• Principle 15: A harmonised contractual arrangement will apply to all CSDs.
• Principle 16: A single calendar and harmonised settlement times will apply to all CSDs.