As T2S approaches final migration, restrictions on primary dealers are undermining efficiencies. Some sovereign issuers are still instructing primary dealers to maintain accounts at domestic central securities depositories (CSDs) in order to receive government bonds, undermining European Union efforts to create an integrated market for settlement via Target2-Securities (T2S). The pan-European platform, due to link up with its final member CSDs on September 18, offers centralised delivery-versus-payment settlement in central bank funds across all European securities markets.
