The launch of Target 2 Securities (T2S), which will be carried out in a series of waves starting June 2015, is intended to harmonise securities settlement processes across Europe, thereby reducing cross border settlement costs and increasing competition. This will have a huge impact on the Cash Bond and Repo markets, with financial organisations benefiting from the creation of new trading opportunities and simpler collateralisation and liquidity management processes as a result of T2S. However, there a number of key decisions that affected institutions will need to make, and challenges that they will need to overcome if they are to fully realise the potential business benefits.
The European Repo Council (ERC) of the International Capital Market Association (ICMA) has commissioned an industry wide survey that will be conducted by Rule Financial to assess market preparedness for, and industry attitudes towards, T2S. It is hoped that the survey results will shed light on industry participants’ understanding of T2S and the possible consequences for their individual firms. This knowledge will then be used by the ERC to help guide and shape its approach in the provision of T2S information, guidance and training to its members.
In the coming days we will issue the ICMA and Rule Financial T2S survey and we would sincerely appreciate it if you would take the time to provide us with your feedback.
If you have any questions regarding the survey, please contact T2Ssurveysupport@rulefinancial.com
If you have any other queries, please contact erc@icmagroup.org