2007年-ECB欧洲央行_TARGET2-Securities_-_Operational_feasibility_87页_671kb

TARGET2-SECURITIES Operational Feasibility Summary

Core Content Overview

The TARGET2-Securities (T2S) project aims to create a centralised, pan-European securities settlement platform that provides settlement services as efficiently as domestic ones. This study evaluates the operational feasibility of T2S, focusing on its functional architecture, roles of stakeholders, and impact on the post-trading industry.

T2S is designed to be a common IT infrastructure that supports cross-border securities settlement, while CSDs will retain all non-settlement functions and their relationships with participants and issuers. The National Central Banks (NCBs) are responsible for operating T2S and managing cash accounts.

Main Operational Roles

CSDs' Roles

• Maintain central registry and custody services, including safekeeping, corporate actions, tax processing, and reporting.
• Provide primary market services and securities lending and collateralisation.
• Authorise settlement instructions, ISINs, and participants.
• Manage static data and settlement rules for T2S.

T2S' Role

• Acts as a settlement platform, focusing on core settlement services.
• Processes settlement instructions and manages cash and securities balances.
• Does not handle non-settlement business, which remains with CSDs.

NCBs' Role

• Operate T2S and maintain the Settlement Agent Database.
• Determine rules and authorisations for cash sub-accounts.
• Provide static data on cash accounts via a TARGET2 interface.

Key Functional Blocks and Interfaces

T2S comprises three main functional blocks:

1. Lifecycle Management

   • Manages the lifecycle of settlement instructions (validation, matching, eligibility, maintenance, purging).
   • Modules: Validation, Matching, Settlement Eligibility, Instruction Maintenance, Purging.

2. Settlement Engine

   • Processes eligible instructions for final settlement.
   • Modules: Sequencing, Booking, Optimisation, Recycling.

3. T2S Static Data

   • Provides reference data for settlement, including valid participants, active ISINs, and market rules.
   • Access is restricted to CSDs via the Authorisation Interface.

Interfaces

• Instruction Interface: For instructing, querying, and maintaining settlement instructions.
• Authorisation Interface: For authorising accounts, ISINs, and user access rights.
• Account Balance Interface: For querying and monitoring account information.
• TARGET2 Interface: For managing cash accounts and central bank liquidity.

Cross-CSD Transactions

• T2S aims to achieve cross-border settlement efficiency equivalent to domestic settlement.
• Inter-CSD accounts are required for investor CSDs to hold securities from issuer CSDs.
• Real-time gross settlement (RTGS) is used for final settlement of valid transactions.
• Technical netting and recycling procedures are used to handle failed transactions.

Account Structure

• T2S will implement a uniform account structure to ensure centralised settlement.
• This structure allows for mapping of local CSD account structures into a common format.
• Instruction converters will be necessary at the CSD level to ensure harmonisation.

Standards

• T2S will use ISO 15022 and ISO 20022 XML message formats.
• These standards will be further developed to accommodate centralised settlement requirements.
• The use of common standards is essential for market harmonisation and seamless operations.

Support Organisation

• CSDs will provide business support to their participants.
• T2S operator (NCBs) will provide technical support.
• Cash account support remains under TARGET2.

Separation of CSD Services and Market Impact

• CSDs will separate settlement from non-settlement functions.
• This separation is expected to enhance efficiency and reduce operational complexity.
• Market impact is assessed as positive, with improved competition and open architecture supporting connectivity.

Conclusion

This study outlines the operational framework of T2S, highlighting the division of roles between CSDs, NCBs, and T2S itself. It provides a high-level functional architecture and procedures for cross-CSD transactions, account structure, and standards. The support organisation and market impact are also discussed, with an emphasis on cooperation and harmonisation.

The T2S architecture is designed to be flexible and open, accommodating both direct and indirect connectivity. It is expected that the market consultation will further refine the functional description, leading to the General User Requirements and eventually the Detailed User Specifications.

The operational feasibility of T2S is confirmed, with the potential for greater settlement efficiency and synergies when integrated with the TARGET2 platform. The next phase will focus on technical feasibility, building on the business requirements defined here.