Euroclear’s ICSD announces intent to join T2S

Euroclear Bank will be able to offer clients the choice between euro settlement in both commercial bank and central bank money.

By Joe Parsons

Euroclear Bank, the Belgium-based international central securities depository (ICSD), has announced plans to join TARGET2 Securities (T2S).

By joining the pan-European securities settlement platform, Euroclear Bank will be able to offer its clients the choice between euro settlement in both commercial bank and central bank money.

“Providing direct access to central bank money through Euroclear Bank is aligned to the EU’s long standing policy objective of developing a more liquid and efficient financial market infrastructure environment. Our initiative will benefit investors and issuers alike, and contribute to more robust capital markets,” said Lieve Mostrey, CEO, Euroclear Group.

With its ICSD live on the T2S platform, Euroclear aims to create a single pool of collateral liquidity across multiple currencies and market jurisdictions.

Currently, only Euroclear’s national CSDs in Belgium, France and the Netherlands are connected to T2S. Last month, it announced its Finland-based CSD will also join T2S in November 2022, five years after it intended to.

Last year, Clearstream, Euroclear’s ICSD rival, began the rollout of its ‘OneClearstream’ initiative, bringing together its domestic, international and Luxembourg-based CSD in order to streamline cross-border settlement of securities.

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