The European Central Bank (ECB) has published a speech by Gertrude Tumpel-Gugerell (Member of the Executive Board of the ECB) entitled "Gains from integrating the European post-trade infrastructure – the case for T2S". Ms Tumpel-Gugerell states that the aim of TARGET2-SECURITIES (T2S) is to make the settlement of European cross-border securities transactions in central bank money as secure, efficient and cheap as domestic settlement transactions. Ms Tumpel-Gugerell also states that T2S will build upon the newly released TARGET2 system (which provides borderless core infrastructure for real-time settlement in central bank money) and bring payments associated with securities settlement together with pure cash settlements across the European Union.

Ms Tumpel-Gugerell also discusses the benefits that TS2 will bring and mentions that it will create a single pool of assets within Europe which will be exchangeable for each other via central bank money at low cost, in real time and in a reliable settlement system. In Europe market participants will be able to pool all of their securities into one system without the need to distribute and allocate securities and central bank money within several independent national platforms. The ECB will be issuing a consultation on the T2S user requirements on 20 December 2007 and market participants will have three months to respond to this.

View Gains from integrating the European post-trade infrastructure – the case for T2S, 30 November 2007