Target2-Securities Framework Agreement

Target2-Securities Framework Agreement

This is the cornerstone of the legal framework of the T2S project. It defines the respective roles and responsibilities of the T2S and 4CB Steering Committees, as well as the relationships between them and external stakeholders. It also sets out the fundamental principles of the financial system, the rights of the Eurosystem with regard to the platform, the conditions for access to CSDs and the eligibility criteria for non-euro area CSDs. It was adopted by the Governing Council on 21 April 2010. The two main documents that make up the T2S T2S contractual framework are the framework agreement for the CSD, which defines its contractual rights and obligations with the Eurosystem, and the monetary participation agreement that governs the relationship between the Eurosystem and non-euro area central banks wishing to make their currency available in T2S. Today, only the Central Bank of Denmark has signed this agreement and foresees the migration of the Danish krone to T2S in 2018. Market participants usually communicate with T2S through the technical interface of their CSD or central bank, but banks can also engage T2S directly. Directly related participants still need an account with their central bank and a CSD in order to carry out securities transactions. The development and operation of T2S was entrusted to the central banks of France, Germany, Italy and Spain (4CBs) and coordinated by the European Central Bank. The expected level of service and the legal relationship between the Eurosystem and the 4CBs are contractual due to their role as a platform service provider.

More information is available on the European Central Bank`s website.

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