TARGET2-Securities (T2S) is the name of the Eurosystem project to offer a new, harmonised and centralised method of settling securities in central bank money. The European settlement market is currently predominantly nation-centric and highly fragmented. Despite the many central securities depositories (CSDs), there is also no active competition in Europe in the field of securities settlement. Some of the main objectives of T2S include improving cross-border settlement in central bank money, overcoming market fragmentation and promoting greater competition.
TARGET2-Securities is solely a settlement service for all types of securities. Custody and its associated services remain in the hands of central securities depositories. Furthermore, participation in T2S is voluntary for all CSDs. The use of other currencies will be permitted in addition to securities settlement in euro. As T2S conducts settlements in central bank money, the respective central bank must, of course, be prepared to make its money available to T2S.
The concept of T2S is based on the "integrated model", which is an amalgamation of central bank money and securities settlement into one platform in "delivery versus payment" mode. The basis for this is the Eurosystem's Single Shared Platform (SSP), on which the real-time gross settlement system (TARGET2) is already operated.
On 17 July 2008, the T2S project was officially started by the Governing Council of the European Central Bank. Four central banks of the Eurosystem - Deutsche Bundesbank, Banque de France, Banca d'Italia and Banco de España (4CB) – were entrusted with the development and the operation of the platform.
T2S will start operations in June 2015.