Euroclear Bank to connect to T2S platform
14 November 2019 Brussels
Image: Shutterstock
Euroclear Bank, the Brussels-based international central securities depository (ICSD), is set to connect its ecosystem to the European Central Bank’s (ECB) Target2-Securities (T2S).
T2S aims to offer a centralised delivery-versus-payment settlement in central bank funds across the European securities market. It also aims to reduce European fragmentation and make securities settlement more efficient.
When connected to the T2S platform, Euroclear clients will be able to choose between euro settlement in both commercial and central bank money across all European securities markets.
According to Euroclear, the move will assist financial institutions in managing their risk, increase efficiency and liquidity, and help to foster more attractive European capital markets.
Euroclear noted that the ability to optimise liquidity in a cost-effective manner has become an increasingly important market requirement as liquidity pressures and spread compression gain prominence in the market.
Additionally, by connecting to T2S, Euroclear is advancing its aim to create a single pool of collateral liquidity across multiple currencies and market jurisdictions.
Speaking at the Euroclear Collateral conference today, one speaker said: “By connecting the [Euroclear] ecosystem to T2S, we are joining in on their ambition to foster new financing opportunities to finance growth in Europe.”`
Lieve Mostrey, CEO of Euroclear Group, commented: “Providing direct access to central bank money through Euroclear Bank is aligned to the EU's long standing policy objective of developing a more liquid and efficient financial market infrastructure environment. Our initiative will benefit investors and issuers alike, and contribute to more robust capital markets.”
The announcement comes shortly after Euroclear Finland revealed its intention is set to join T2S in November 2022.
Euroclear’s CSD in Belgium, France and the Netherlands joined T2S in 2016.
T2S aims to offer a centralised delivery-versus-payment settlement in central bank funds across the European securities market. It also aims to reduce European fragmentation and make securities settlement more efficient.
When connected to the T2S platform, Euroclear clients will be able to choose between euro settlement in both commercial and central bank money across all European securities markets.
According to Euroclear, the move will assist financial institutions in managing their risk, increase efficiency and liquidity, and help to foster more attractive European capital markets.
Euroclear noted that the ability to optimise liquidity in a cost-effective manner has become an increasingly important market requirement as liquidity pressures and spread compression gain prominence in the market.
Additionally, by connecting to T2S, Euroclear is advancing its aim to create a single pool of collateral liquidity across multiple currencies and market jurisdictions.
Speaking at the Euroclear Collateral conference today, one speaker said: “By connecting the [Euroclear] ecosystem to T2S, we are joining in on their ambition to foster new financing opportunities to finance growth in Europe.”`
Lieve Mostrey, CEO of Euroclear Group, commented: “Providing direct access to central bank money through Euroclear Bank is aligned to the EU's long standing policy objective of developing a more liquid and efficient financial market infrastructure environment. Our initiative will benefit investors and issuers alike, and contribute to more robust capital markets.”
The announcement comes shortly after Euroclear Finland revealed its intention is set to join T2S in November 2022.
Euroclear’s CSD in Belgium, France and the Netherlands joined T2S in 2016.
NO FEE, NO RISK
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