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Inside magazine issue 12 | Part 02 - From a regulatory perspective<br />
T2S 19 Principles<br />
The concept of T2S is based on 19<br />
General Principles formulated in<br />
conjunction with the market and<br />
designed to ensure the resilience,<br />
integrity and neutrality of the<br />
Eurosystem’s settlement platform.<br />
01. The Eurosystem shall take on the<br />
responsibility of developing and<br />
operating T2S by assuming <strong>full</strong><br />
ownership<br />
02. T2S shall be based on the<br />
TARGET2 platform and hence<br />
provide the same levels of<br />
availability, resilience, recovery<br />
time and security as TARGET2<br />
03. T2S shall not involve the settingup<br />
and operation of a CSD, but<br />
instead serve only as a technical<br />
so<strong>lu</strong>tion for providing settlement<br />
services to CSDs<br />
04. T2S shall support the<br />
participating CSDs in complying<br />
with oversight, regulatory and<br />
supervisory requirements<br />
05. Each CSD’s client securities<br />
accounts shall remain legally<br />
attributed to the CSD in question<br />
and each central bank’s client<br />
cash accounts shall remain legally<br />
attributed to the central bank in<br />
question.<br />
06. The T2S settlement service allows<br />
CSDs to offer their customers at<br />
least the same level of settlement<br />
functionality and coverage of<br />
assets in a harmonized way<br />
07. Securities account balances shall<br />
only be changed in T2S<br />
08. T2S shall settle exc<strong>lu</strong>sively in<br />
central bank money<br />
09. The primary objective of T2S is<br />
to provide efficient settlement<br />
services in euro<br />
10. T2S shall be technically capable<br />
of settling currencies other than<br />
the euro<br />
11. T2S shall allow users to have<br />
direct connectivity<br />
12. CSDs’ participation in T2S shall<br />
not be mandatory<br />
13. All CSDs settling in central bank<br />
money and fulfilling the access<br />
criteria shall be eligible to<br />
participate in T2S<br />
14. All CSDs participating in T2S shall<br />
have equal access conditions<br />
15. All CSDs participating in T2S<br />
shall do so under a harmonized<br />
contractual arrangement<br />
16. All CSDs participating in T2S shall<br />
have a calendar of business days<br />
with harmonized opening and<br />
closing times for settlement<br />
17. T2S settlement rules and<br />
procedures shall be common to<br />
all participating CSDs<br />
18. T2S shall operate on a <strong>full</strong> costrecovery<br />
and not-for-profit basis<br />
19. T2S services shall be compatible<br />
with the principles of the<br />
European Code of Conduct for<br />
Clearing and Settlement<br />
Source: European Central Bank<br />
The Eurosystem is a capable, trustworthy<br />
and proven manager of T2S as it has vast<br />
experience of success<strong>full</strong>y designing and<br />
implementing pan-European financial<br />
infrastructure and institutions.<br />
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