GFT and ICMA European Repo Council survey into T2S receives wide press coverage

 

Following their recent release, there has been an extensive media reaction to the results of the GFT and the ICMA European Repo Council industry-wide survey into the market preparedness and industry attitudes towards Target2-Securities. 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.

The results of the survey were covered by various media outlets with the likes of Automated Trader, Securities Lending Times, FX-MM, Global Custodian, Institutional Asset Manager and HedgeWeek highlighting the significance of the survey.

In the survey the majority of respondents (75%) agreed or strongly agreed that they were aware of the implications of T2S, with less than 20% believing that doing nothing was a viable option. More than 80% of respondents felt that T2S will have a significant impact on their organisation. One surprising and concerning message is that the types of firms who perceived T2S as having less impact included Custodians and Central Banks.

In addition to this most business areas anticipate benefits from T2S. 71% of operations staff and 62% of funding staff see positives. Network Management respondents were more cynical with only 45% seeing benefits. In the front office, 44% of cash traders and 55% of repo traders see benefits. For repo traders, benefits are likely to include increased liquidity collateral via more efficient settlement and harmonisation of settlement deadlines.

 

Download the full survey findings at the ICMA website.