TARGET2-Securities ('T2S') is a new European securities settlement
engine, going live over four waves between 2015 and 2017, which aims to offer centralised delivery-versus-payment (‘DvP') settlement
in central bank funds across all European securities markets. The IT platform is owned and operated by the European Central Bank (‘ECB') and 17 national central banks in the euro area (which are collectively known as the ‘Eurosystem'). The fundamental objective of the T2S project is to integrate and harmonise the currently highly-fragmented securities settlement
infrastructure in Europe. It aims to reduce the costs of cross-border securities settlement
within the euro area and participating non-euro countries, as well as increase competition and choice amongst providers of post-trading services. It will therefore be a critical step forward in the creation of a single market in financial services in the European Union, fulfilling one of the goals of the Lisbon agenda.