T2S implementation to be delayed by another two months?

Wave 1 of T2S (Target2-Securities) is set to go live on 22 June, representing the first step towards the implementation of a single settlement platform across Europe. The project was first conceived in 2006 and launched in 2008. Throughout its existence, the project has been subject to numerous delays and as the starting line approaches, it looks as though it could face another.

Speaking at the AFME European Post-Trade Conference in London, Paul Bodart, a board member on the ECB’s T2S project, raised the possibility of there being further delays to the implementation of the project owing to technical issues that need to be resolved ahead of the planned 22 June launch.

“We have listed all of the effects that must be resolved,” said Bodart. “There has to be a stable working environment. There is a possibility to resolve everything and we are now working on weekly corrections.”

He pinpointed issues around reconciliation, automated collateral returns and the response time. “The solution we have now is better than before, but not at an acceptable level to the community.”

Bodart went on to add that, “we cannot launch if critical areas cannot be addressed properly.”

If the 22 June deadline is missed, it will impact the whole T2S project, which is going live in four Waves. Bodart, however, is certain that there is a little bit of room for manoeuvre.

“We believe that there is a window to delay the launch by two months, until September, without affecting the other waves,” he claimed. “It is important not to impact Wave 2 (set to go live on 28 March 2016) – if we miss September then the whole T2S project will be impacted. There is a buffer, but working through July/August (the traditional European holiday season) is far from ideal.”

Wave 1 of T2S implementation includes Monte Titoli, Bank of Greece Securities Settlement System, Malta Stock Exchange, Depozitarul Central S.A and SIX SIS ltd. 

Tags: CSDT2SSettlementECB