Europe’s plumbers: Keeping capital flowing

Abstract

The Eurosystem contributes to making sure Europe has the infrastructure it
needs so that money and financial assets can flow safely and efficiently
within and across European borders. This paper looks at the latest piece of
the financial market infrastructure to have been put in place:
TARGET2-Securities, or T2S. This pan-European securities settlement platform
brings an array of benefits to the markets in terms of lower prices, more
efficient and standardised settlement practices, better collateral management
and more competition. But it also benefits Europe’s economy more broadly by
bringing greater financial stability and making Europe a more attractive
place for investors both at home and abroad. With the migration of European
markets to the T2S platform over the course of the next two years, these
benefits will increasingly come to fruition. T2S, together with the other
initiatives in this field that the Eurosystem will focus its efforts on over
the next few years, will move Europe ever closer to the goal of a true single
market in Europe.