Emily Cates article on T2S featured by Securities Lending Times

 

The Securities Lending Times have featured an article by Emily Cates (Specialist in Operational Processing, GFT) entitled ‘T2S: overcoming the hurdles’ in their ‘A focus on regulation’ monthly segment. Emily analyses the challenges of Target2-Securities (T2S) and how Europe’s post-trading landscape is about to experience a dramatic change.

With the first phase of T2S going live in June 2015, Emily highlights that it will be “the first step towards establishing a fully integrated capital market without international borders.” Emily also adds that "In this reformed market, it is envisaged that T2S will bring a reduction in settlement times, costs and credit risk. T2S should also improve collateralisation practices, allowing banks to centralise collateral assets into a single pool; reducing the need for multiple funding accounts.”

While acknowledging that T2S had been well received and widely supported across the industry, Emily believes that “the practicalities of achieving greater harmonisation will remain challenging.” Plus with a cautious first phase in 2015, “The impact of T2S will be more significant in 2016 with the introduction of larger markets to the platform.”

The article in the Securities Lending Times follows the recent release of the joint GFT and ICMA European Repo Council survey into the market preparedness and industry attitudes towards T2S. The survey results provide insights on industry participants’ current understanding of T2S, their level of practical engagement and their understanding of the consequences of T2S to their individual firms.

 

Download the full survey findings visit the ICMA .