Securities settlement systems


The Central Bank of Malta, as part of the Eurosystem, is currently involved in the implementation of TARGET2-Securities (T2S). Four central banks, Deutsche Bundesbank, Banque de France, Banca d'Italia and Banco de España, are entrusted with the development and the operation of this platform. This project was launched by the Governing Council of the European Central Bank in July 2008.

The concept of T2S is based on the "integrated model", which is an amalgamation of central bank money and securities settlement onto one platform in delivery versus payment (DvP) mode. The basis for this is the Eurosystem's Single Shared Platform (SSP), on which the real-time gross settlement system (TARGET2) is already operated.

T2S has the following characteristics: 

  • belongs to the Eurosystem and is developed and run on a cost recovery basis;
  • constitutes a major infrastructural change for Europe's financial markets creating an internal market for settlement;
  • makes markets safer and more efficient;
  • has a single IT platform for core, neutral and borderless securities settlement;
  • reduces settlement fees;
  • effects real-time DvP settlement in central bank money;
  • provides banks with significant savings in collateral and liquidity;
  • comprises a multi-currency platform;
  • gives a service to Central Securities Depositories (CSDs), but is not a CSD;
  • offers a full range of benefits not only in terms of price and collateral savings, but also in terms of risk reduction, back office stream lining, increased competition and new business opportunities.

T2S started operations on 22 June 2015 and the Central Bank of Malta, together with the Malta Stock Exchange, were amongst the first institutions to join the system in its first migration wave. T2S will be fully developed across 21 European countries by February 2017.

The Maltese market is involved in the T2S project through the National User Group (NUG). The NUG was established in 2012 and comprises providers and users of securities settlement services in Malta to support the development, implementation and operation of T2S.

ECB TARGET2-Securities