T2S – Europe’s single securities settlement engine


Countless securities are bought and sold every day on financial markets. When investors buy and sell securities the security and payment need to change hands – a process called securities settlement. TARGET2-Securities, or T2S, is a safe platform developed by four central banks (Deutsche Bundesbank, Banca d’Italia, Banque de France and Banco de España) and operated by the Eurosystem where the exchange can happen simultaneously, i.e. where delivery versus payment is possible. The T2S Platform started operations on 22 June 2015.

The cash leg (payment) of the securities transactions takes place in central bank money. Participants manage their cash on dedicated cash accounts (T2S DCAs) opened in the books of their respective central bank. In Belgium the NBB Target Services Helpdesk assists the T2S participants in opening, managing and closing their DCAs. The supply of cash to these accounts occurs through the RTGS accounts held in the Payment Module (PM) of the Single Shared Platform of TARGET2.

To settle securities on the T2S platform a participant also needs a securities account opened with one of the central securities depositories (CSDs) connected to T2S. 

Simultaneous settlement

To buy and sell securities settlement instructions are sent to the T2S platform where they are checked and matched. When matched T2S settles the transaction on a delivery-versus-payment (DvP) basis, i.e. the money and securities change hands simultaneously. Transactions are made using central bank money, which reduces risk.

T2S also offers a set of sophisticated technical features, including optimisation algorithms to enhance settlement efficiency and advanced auto-collateralisation mechanisms.  

Different currencies in T2S

Currencies other than the euro can be used for settlement in T2S if the central bank concerned is connected to the platform and willing to add its currency. In addition to the euro, the Danish krone is available for settlement in T2S since October 2018.

Only for professional users