The settlement of securities transactions process ensures that the securities purchased are received at the buyer’s book-entry account and that the payment is received to at seller’s bank account, in accordance with the principle of delivery-versus-payment principle. Settlement is reliable and efficient in the domestic market, but not always in cross-border transactions. This is mainly due to differences in market practices and incompatibility of IT systems. The aim of the Eurosystem’s TARGET2-Securities project is to create a single joint system in which the securities transactions of the countries joining the system will be executed. T2S will go live in 2014.
The task of the Bank of Finland’s Financial Markets and Statistics department is to ensure that the T2S system provides Finnish investors, securities issuer and market participants the best possible services. The channel through which influence is exerted is the TARGET2-Securities Finnish National User Group (T2SFINNUG). The user group comprises a large number of Finnish market participants with whom views are compiled to be introduced to the T2S Programme Board that is responsible for the day-to-day management of the T2S project. The Financial Markets and Statistics department also participates in the oversight of the T2S project. The Bank of Finland’s
Banking Operations department participates in the T2S project in the role of owner and financier.
Detailed information on the T2S project is available on the
ECB’s website.