TARGET2-Securities

TARGET2-Securities is a single technical platform owned by the central banks of the Eurosystem, and is intended for the settlement of securities transactions by providing simultaneous settlement of securities in accounts at a central securities depository and of euro (and other currencies) in cash accounts at the central bank. TARGET2-Securities began operations in June 2015, and is currently used by more than 20 central securities depositories from the euro area and certain other countries (Switzerland, Hungary, Romania and Denmark).

The objective of TARGET2-Securities is ensuring the faster integration of the fragmented and locally oriented infrastructure in the EU, increasing the efficiency and security of securities settlement, standardising domestic and cross-border settlement procedures, and reducing the existing gaps in settlement costs between domestic and cross-border transactions.

The establishment of TARGET2-Securities is expected to ease investors’ access to securities issued at other central securities depositories, and to improve securities issuers’ opportunities to expand their international base of investors. TARGET2-Securities also benefits Eurosystem central banks and their counterparties participating in credit operations that require secure and efficient ways of pledging domestic and foreign securities as collateral for Eurosystem loans. The indirect benefits of the TARGET2-Securities project are evident in the intensive activities for the harmonisation of local market practices and procedures for corporate actions.

The latest information on TARGET2-Securities can be found on the ECB website.