Euroclear Bank joining T2S

Contributing to the building of European Capital Markets Union

Single FMI entry point

Euroclear Bank has signed an agreement with the European Central Bank (ECB) and the central banks of the euro area to join ECB’s TARGET2-Securities (T2S) settlement system. 

Euroclear Bank as an open Financial Market Infrastructure is where the pan-European and Global markets intersect. By providing a seamless access to Central Bank Money (CeBM) and Commercial Bank Money (CoBM) in EUR, Euroclear Bank will allow its clients to consolidate all their EUR liquidity in one location.

Euroclear Bank joining T2S will: 

  • make it easier for EU companies to access reliable and efficient sources of funding
  • enable a broad range of securities to be eligible for settlement on T2S, translating into real flexibility in the choice of central bank money and commercial bank money for Euro Settlement
  • increase European market resilience by reducing the overall settlement risk through 
    • the central bank guarantee on settlement payment obligation 
    • a centralised access to a large pool of international securities, to support settlement liquidity on T2S
    • a wide range of secured sources of funding, including central bank credit operations


Key benefits for you

Maximised access to secured financing sources

  • One single location for a wide range of assets eligible as collateral
  • Maximising access to sources of financing
  • Including access to Eurosystem credit operations through the ECMS

Optimised liquidity management

  • Full EUR cash and collateral pooling opportunities
  • T2S auto-collateralisation supporting your core settlement activity 
  • Integrating your CeBM and CoBM activities

Cost reduction through harmonisation

  • Harmonised Value Added Services
  • Full interoperability between your T2S and non-T2S businesses
  • Facilitating your migration efforts

Opportunities to reduce your capital charges

  • Extending balance sheet netting opportunities
  • Reducing liquidity buffer requirements

Supporting the Capital Markets Union

The goal of the Capital Markets Union (CMU) is that the European citizens and businesses benefit of deep, competitive, efficient and reliable sources of funding and investment in the EU Capital Markets. 

Following the coronavirus crisis, market-based financing will more than ever be essential to sustain the recovery and the return to long-term growth. Accordingly, and keeping in mind the overarching goal of the CMU, the EU Commission has defined a new CMU Action Plan with three key objectives, namely:

  • Support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies
  • Make the EU a safer place for individuals to save and invest long-term
  • Integrate national capital markets into a genuine single market 

The Euroclear group has always been committed to the success of the CMU, and Euroclear Bank joining T2S is the next logical step for the Euroclear group to contribute to the CMU Action Plan.

“We are very pleased to have achieved this significant milestone with the ECB as we work together to establish a more holistic, efficient and robust European settlement landscape, aligning to the EU Capital Market Union’s objectives.”

Lieve Mostrey, CEO of the Euroclear Group

For more information

Eric de Spirlet
Product Management - Credit and Liquidity Services

Tel: +32 2 326 2368 • Mobile: +32 477 972 088

Sabine Vermaete 
Commercial Division - T2S Product Solutions

Tel: +32 2 326 15 20 • Mobile: +32 475 83 40 51