T2S is a service based on centralised settlement using a single platform for securities transactions that are settled in the Euro zone and other participating countries. T2S will operate as a shared IT solution for settlement denominated in the euro and other European currencies. The service will be provided by the European Central Bank (ECB).
ECB’s objective for T2S is to reduce the cost of securities settlement in Europe. ECB intends to achieve this objective by providing solutions for cross-border securities settlement, as well as by standardising settlement and harmonising market practice. T2S is due to be launched in 2015 and the CSDs that accept the offer from ECB within June 2012 will migrate in 2015-2016.
Participation in T2S by a central securities depository involves outsourcing part of its existing settlement functions to ECB/Eurosystem. Other services that VPS currently offers, for example issuer and investor services, will in principle not be affected by the introduction of T2S. In order for T2S to be used for Norwegian settlement, it will be necessary for Norges Bank to make Norwegian kroner available in T2S.
VPS, working in collaboration with Norwegian market participants, other European central securities depositories and the ECB, has participated in the program of work for T2S for more than two years. VPS has also carried out a hearing in the Norwegian market on the question of whether VPS should enter into an agreement with the ECB to participate in T2S in the first phase. Based on an overall evaluation, and in agreement with the views of the parties that participate in securities settlement, VPS has decided to work towards becoming a participant in T2S in the second phase of the project (2018/2019).
VPS, together with the rest of the Norwegian market, takes a positive view of all measures that can help to strengthen the attractiveness of the Norwegian capital market for both Norwegian and foreign investors and issuers. VPS will now work to identify the best future solutions for the Norwegian market. This will include deciding how the T2S platform will be used and when to start using it.
About VPS: Verdipapirsentralen ASA, the central securities depository of Norway, provides infrastructure and services for registration of ownership of financial instruments as well as clearing and settlement. The company offers registration and settlement services for all the major types of financial instruments traded in Norway, namely equities, equity certificates, bonds and short-term debt instruments, warrants and units in mutual funds.
For further information, please contact:
John-Arne Haugerud, CEO, VPS
Tel: +47 901 15 337
Email: John.Arne.Haugerud@vps.no