We believe T2S is more than just a settlement platform – it represents a fundamental reshaping of European capital markets. More than this – it presents benefits and opportunities for savings for all those involved in dealing with securities.
Harnessing the benefits of T2S could help banks to:
- Reduce their capital requirements
- Gain access to Central Bank Money for settlement
- Generate collateral pooling opportunities
- Minimise asset fragmentation
- Increase settlement netting possibilities
- Simplify back-office operations and network management
Executive insights following T2S migration
Hear what our Executives have to say about the changing market dynamics in the new T2S world:
Phil Brown explains our Clearstream T2S value proposition for customers.
This interview includes what we mean by consolidated, single access to the T2S markets via Clearstream (OneClearstream: Delivering more through integrating our CSD in Germany, our ICSD and LuxCSD entity services); our transition into our new asset servicing model, connectivity interface ClearstreamXact and vision for collateral management opportunities.
Marc Robert-Nicoud talks through the impact of T2S on the capital markets, both today and into the future.
Studies on T2S
The Future of Global Debt Issuance: 2025 Outlook
T2S offers a host of benefits to the issuing community and will alter the European issuance landscape, a study done in cooperation with Aite Group in 2017 found. Coupled with the EU Central Securities Depository Regulation (CSDR), which aims to bring central securities depositories onto a level playing field, issuance is set to become more cost-effective, efficient and standardised.
Read The Future of Global Debt Issuance: 2025 Outlook
Evolution or overhaul? How banks are adapting to T2S in Europe
A study by Accenture and Clearstream, published in 2016, provided a snapshot of banks’ strategy towards T2S access halfway through the migration process. The study revealed three key findings:
- 90 percent of banks declare themselves operationally ready for T2S.
- A plurality of access models are in discussion and implementation for T2S; however, there is an emerging trend towards approaches based on single or few points of access at the infrastructure level for both cash and securities.
- Asset servicing is a key strategic component of respondents’ T2S strategies, despite the decoupling of asset servicing from settlement as a result of the implementation of T2S.
Read Evolution or overhaul? How banks are adapting to TARGET2-Securities in Europe
The T2S Opportunity
A 2014 study by Oliver Wyman revealed the T2S benefits banks can unlock by consolidating their securities and cash holdings in Europe directly with CSDs and central banks. Complementary case studies revealed that brokers, asset managers and banks could save between EUR 30 and EUR 70 million annually if they take timely action to delayer and consolidate assets across major T2S markets.
Read The T2S Opportunity
The 300 Billion Euro Question
A study by PricewaterhouseCoopers (PwC), commissioned by Clearstream in 2013 revealed that the benefits of T2S go far beyond increasing cross-border settlement efficiency. Improvements will result in greater mobility of collateral but that's not all - the research also revealed that there is plenty of room for streamlining the custody chain and thus reducing risks therein.
However, the most important finding of all was the discovery that a single cash account under T2S could help banks in the Eurozone meet their Basel III capital requirements.
Read The 300-billion-euro Question
Clearstream’s T2S Client Paper
Clearstream’s Executive Board Members and T2S experts share their perspective on the changes T2S will bring, give their views on the future shape of the European post-trade landscape and outline our value proposition in our T2S Client Paper.
The Client Paper is available as a downloadable PDF (English, German).