Following nine years in the making, the first wave of migration to the Target2Securities platform (T2S) in Europe today marks a major milestone in the harmonisation of the landscape for the settlement of domestic and cross-border securities transactions. T2S is a fundamental change in the European trading environment which will not only advance the dialogue for greater coordination in settlement procedures, but also promote investment growth through an enhanced, harmonised settlement process, both in Europe and globally.
By standardising settlement methodologies across Europe, the new and automated process is expected to greatly increase efficiency, while reducing capital requirements and operational risk for global asset managers. These measures will reduce the timeframe of settlement cycles across Europe, creating a streamlined, synchronised and more predictable process for which we have already seen widespread support across global market participants. Connecting to T2S also firmly complements the new T+2 settlement cycle in Europe and is an important step in the right direction towards a more fiscally harmonised Europe and borderless settlement ecosystem.
Kashyap Kapasi is director, Strategic Solutions, Investment Services at Fiserv