TARGET2-Securities (T2S) will proceed according to the planned implementation timeline, sources have told Global Custodian. A project implementation checkpoint at the European Central Bank last week confirmed that the harmonized settlement platform for the Eurosystem is on track for the first phase of migration of five CSDs in 2015.
The first migration phase will see Monte Titoli migrated to T2S June 2015, when the platform goes live, followed shortly afterwards by Greece, Malta, Romania and Switzerland.
In the second phase, Euroclear, including the CSDs of France, Belgium and the Netherlands, and Iberclear will be migrated in July 2016. In the last phase, Cleastream and Interbolsa will be migrated in November 2016.
However, the price per settlement instruction remains unclear, it is understood, since the absence of the UK and Sweden from the framework agreement means that settlement volumes may not be enough to pay for the 1.4 billion project at the current 15 cents per instruction. A fee increase, to 18 cents, is being considered.
(JDC)