The Central Securities Depository (CSD) and the Government Securities Depository (GSD) announced Tuesday successfully completing their migration to the TARGET2-Securities (T2S) securities settlement platform.
To date, the CSD has officially transferred the settlement of around 80 euro-denominated securities to T2S. Since its launch in 2015, T2S has been an important factor in advancing financial market integration in Europe by enforcing pan-European and harmonised rules for securities settlement. Figures for 2022 show that the platform is the settlement vehicle of choice for all major depositories in Europe, with T2S processing an average of 700,000 transactions every day.
“T2S is crucial to Europe’s financial infrastructure and undoubtedly helps member depositories on the platform to be more accessible and discoverable to investors across the continent. We believe that our participation in T2S will increase our client base and make Bulgarian companies more visible to European investors. At the Central Securities Depository, we support pan-European initiatives such as T2S that make securities settlement safer and more efficient, while reducing risks and creating solid foundations for a fair and transparent capital market. We are delighted to have achieved this significant success and in doing so we are helping Bulgaria to be more technically prepared for its membership in the euro area,” CSD Executive Director Vasil Golemanski said.
CSD continues to work closely with the European Central Bank and the T2S governance structures, now as a full member of the platform with involvement in decisions on the future development of the pan-European market infrastructure, CSD’s announcement read.
In line with the implementation of the commitments under the National Plan for the introduction of the euro in the Republic of Bulgaria, on September 11, 2023, the BNB Government Securities Settlement System (BNBGSSS) joined Eurosystem’s T2S securities settlement platform. The migration to T2S is the result of joint work between the BNB and the Eurosystem which started in 2021.
On 28 July 2023, the BNB, as the owner and operator of BNBGSSS, received approval from the European Central Bank’s Governing Council for the request of BNBGSSS to join T2S.
T2S is one of the TARGET Services provided by the Eurosystem to help improve the integration of financial markets in Europe by harmonising securities settlement in central bank money at the pan-European level. The participation of BNBGSSS in T2S will contribute to better availability of Bulgarian euro-denominated government securities for EU investors and is an important step towards the adoption of the euro in Bulgaria, BNB said.
In connection with joining T2S, the BNB’s Management Board adopted a joint Regulation of the Finance Ministry and the BNB to amend and supplement Regulation No 5 of the Finance Ministry and the BNB on the terms and conditions for the acquisition, disbursement and trading of government securities, as well as a Regulation to amend and supplement Regulation No 31 of the BNB on the settlement of government securities. These regulations provide for the regulatory changes resulting from joining T2S and are effective from September 11, 2023.