A Lost Opportunity For Harmonization

The settlement harmonization that TARGET2-Securities (T2S) promised to deliver looks to be unachievable, at least in the short term. Market participants such as central securities depositories (CSDs), agent banks and clearing houses that have chosen to be directly connected actors will use ISO 20022 standards and clear market practices. However their clients, as indirectly connected participants (ICPs), will continue to use ISO 15022 standards that are not fully harmonized.