The Eurosystem's TARGET2-Securities (T2S) initiative is introducing a single integrated process across Europe for DVP settlement in EUR central bank money.

LuxCSD migration to T2S

LuxCSD migrated to the T2S platform on 6 February 2017. LuxCSD has the advantage that it can leverage the full service range of Clearstream, that is, an extensive settlement network covering all the future T2S markets and many others, and offer value-added services that will be of interest beyond Luxembourg. Further information about our enhanced offering via integrated LuxCSD and Clearstream platform is available on the OneClearstream section of the Clearstream website.

We believe TARGET2-Securities (T2S) is more than just a settlement platform – it represents a fundamental reshaping of European capital markets. More than this – it presents benefits and opportunities for savings for all those involved in dealing with securities.

T2S Model

Harnessing the benefits of T2S could help banks to:

  • Reduce their capital requirements
  • Gain access to Central Bank Money for settlement
  • Minimise asset fragmentation
  • Increase settlement netting possibilities
  • Simplify back-office operations and network management

The introduction of T2S coupled with other significant market and regulatory initiatives were key drivers for introducing central bank money settlement in Luxembourg and for providing a Luxembourg based access point to T2S.

LuxCSD is playing a central role in supporting the local financial institutions to get ready for and be a part of T2S and, simultaneously, in allowing Luxembourg's marketplace to remain competitive as a financial centre in a post T2S world.