ECB Gains Multilateral Agreement for T2S – What Happens Next?

23 July 2009

“Target2-Securities is an important project….It provides an essential interface to settle transactions quickly, so we think this is a very important way forward to reduce risk.” David Wright, Deputy Director General, Internal Markets & Services, European Commission.

“T2S will be launched no later than 2013, perhaps in 2012. CSD’s will be able at that point to adopt its settlement engine, and that will mean that all the balances, in all the securities, are in one place available to everyone.” – Iain Saville, Senior Advisor to the European Central Bank.

Earlier this year, SunGard interviewed Iain Saville and David Wright for their views on the future of European clearing and settlement. With last week’s signing of the Memorandum of Understanding for Target2-Securities (T2S), which sets out the obligations and responsibilities for the next stage of T2S, the views and thoughts expressed in the interviews can be shown to coming to fruition. The question is, what happens next?

Iain Saville commented: “The next major items are to validate the technical designs, which reflect the business requirements already published, and then of course a prolonged period of build, test, trialing and then migration.”

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