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CSDs and the future Eurosystem infrastructure

In 2015, the Eurosystem had announced its desire to improve the financial market infrastructure by the year 2020. One way to make the existing infrastructure more efficient would be for the Eurosystem to explore potential technical synergies between the TARGET2 (T2) payment system and the TARGET2-Securities (T2S) platform.

In April 2016, ECSDA took part in the first consultation on the future infrastructure for real-time gross settlement (RTGS) and issued a short response to outline three aspects worth considering from a CSD perspective, i.e.:

  • the need to assess the legal implications of further technical consolidation between T2 and T2S, as well as the impact on existing governance structures;
  • the importance of maintaining T2 and T2S as clearly distinct services, irrespective of any technical consolidation;
  • the need to address any concentration risk that would result from the consolidation of the T2 and T2S platforms.
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