Navigation Path: Home > Payments & Markets > Market infrastructures > Securities > Integration
The content on T2S has been moved within this website.
The new location: TARGET2-Securites
Countries (coinciding with currency areas) originally developed their own 'domestic' infrastructure for securities trading, clearing and settlement. For the single currency area the Eurosystem wishes to contribute towards establishing a similarly coherent infrastructure.
Despite the single currency, the euro area infrastructure is still highly fragmented. There are many providers for trading, clearing and settlement. For example, there are 18 SSSs in the euro area eligible for Eurosystem credit operations. When looking at the number of SSSs in the EU, also those located in Denmark, Sweden and in the United Kingdom must be accounted for, as well as those located in the 10 new EU Member States which have recently been informally assessed by the ECB.
For details, seeThe fragmentation of the market infrastructure in the euro area, and of the EU causes inefficiencies. Many buyers and sellers in different countries have to use some form of intermediation to carry out their trades. As long as settlement remains fragmented, transfers between separate systems – operating under different legal and regulatory regimes – will remain more complex and, therefore, more expensive than domestic transfers.
back to topFor the ECB, integration of the infrastructure means access for all users to the same services on the same conditions – regardless of the location of the user or provider. For instance, clearing and settlement costs and risks for trades in both national and other euro area / EU securities markets should be the same for the (final) investor.
Efficient and safe securities clearing and settlement systems are essential for integrated capital markets. Market forces should drive the integration process. The ECB supports this process because it benefits the sound execution of monetary policy, the smooth functioning of payment systems, and the preservation of financial stability.
back to topThe ECB supports the integration process by