Announcement

TARGET2-Securities: Directly Connected Participant declaration of interest

Key Documentation

Reference

Code
M13043
Service level
CBL
Last Updated
14.10.2013

TARGET2-Securities (T2S) will reshape the European securities settlement landscape and provide unique opportunities to benefit from a harmonised European settlement infrastructure. With T2S, any CSD participant will have the possibility to become a “Directly Connected Participant” (DCP) to T2S in order to make use of its services, i.e. using ISO 20022 and without the need of the CSD acting as the (direct) technical interface to T2S.

Entities that are interested in becoming a DCP (DCP candidates) on the securities side (the cash side is not concerned here) are requested to provide a non-binding declaration of their interest by 15 October 2013. The information on which CSD participants intend to become DCPs aims at facilitating a more reliable planning of DCP-related activities in the T2S Programme.

DCP candidates who submit their non-binding declaration to become a DCP to the CSD Steering Group (CSG) Chair Office by 15 October will be considered to migrate within the first T2S migration phase. According to the Eurosystem, any declaration of interest submitted after the above-mentioned deadline may only be considered on a “best efforts” basis for the first T2S migration phase.

Who is expected to provide the non-binding DCP declaration by 15 October 2013?

Candidates who intend to become a DCP on the securities side and who will establish a (direct) A2A network connection (ISO 20022) with the T2S platform have to declare their interest to become a DCP. Participants wanting to connect to T2S via the GUI (U2A interface) are not concerned by this declaration of interest.

When a CSD participant intends to send instructions to T2S via a third party who has established a (direct) A2A network connection to T2S (e.g. via another CSD Participant acting as ‘account operator’ or ‘technical router’), it is the latter who is directly connected to the platform. Thus, the third party will be the one who is requested to issue the non-binding DCP declaration by 15 October 2013.

To whom and how must the non-binding DCP declaration be provided?

DCP candidates must notify their interest by means of an email directly to the CSG Chair Office (email: CSG.ChairOffice@clearstream.com) by 15 October 2013 at the latest. The CSG Chair Office will consolidate the notifications received and will immediately forward them to the T2S Advisory Group chairperson and the CSD Sponsors.

The non-binding DCP declaration can be withdrawn at any point in time. In this case, direct participation will only be possible at a later stage, i.e. on a “best efforts” basis. A formal binding declaration will be necessary well in advance of the start of the testing effort for a respective migration wave (deadline to be confirmed).

What information must be provided?

In order to declare yourself as a DCP, you need to provide the following information in your intention email:

  • Entity name
  • Entity address
  • Entity BIC (if applicable)
  • Ideally the declaration indicates if the entity aims to become a DCP in one or more markets. An indication of the targeted markets would be appreciated but is not mandatory yet.

For further information, please do not hesitate to contact your Relationship Officer who remains at your disposal.