Press release - Successful migration of the Slovenian environment to the TARGET2-Securities settlement platform
On 6 February 2017 the Bank of Slovenia and the Central Securities Clearing Corporation (KDD) successfully migrated to TARGET2-Securities (TS2), the Eurosystem’s single platform for securities settlement.
As of the migration to T2S, the settlement of all securities transactions concluded within the framework of the regulated market operated by Ljubljana Stock Exchange and securities transactions concluded bilaterally outside the regulated market within the framework of KDD is executed in T2S according to the principle of delivery versus payment. The Bank of Slovenia and KDD have technically transferred cash accounts and securities accounts to T2S to this end, but in operational and legal senses the accounts remain the responsibility of the Bank of Slovenia and KDD.
The Bank of Slovenia acts in T2S as the operator of the national cash component for T2S cash accounts, in which Slovenian market participants are granted access to cash accounts in T2S and intraday loans in euros for the purpose of the settlement of securities transactions. Accordingly KDD acts in T2S as the operator of the securities settlement system, and has opened securities accounts for its members in T2S to this end.
Joining T2S grants the Slovenian environment continuity in participating in European harmonisation and integration processes in the post-trade area. The entire process of adapting the Slovenian environment to T2S has actually been underway since 2008, when the Eurosystem took the decision to build T2S, and numerous activities have been carried out in this process for the purpose of harmonising the functioning of the domestic post-trade segment of the securities market.
The anticipated benefits of the inclusion of the Slovenian environment in T2S are:
(1) an increase in the set of potential investors for Slovenian securities issuers as a result of easier access to Slovenian securities for foreign central securities depositories and brokers;
(2) more efficient execution and a reduction in costs in cross-border securities settlement as a result of a greater level of harmonisation and standardisation of operational and technical solutions in securities settlement;
(3) improved conditions for increasing the amount of cross-border securities transactions as a result of the anticipated reduction in transaction costs for cross-border settlement;
(4) increased efficiency for Slovenian brokers as a result of the reduction/elimination of the gap between market practices in securities settlement inside and outside Slovenia;
(5) new services for brokers in the Slovenian securities market;
(6) increased competition between Slovenian providers of post-trade services;
(7) more efficient execution of domestic and cross-border collateral procedures for Eurosystem credit operations; and
(8) more effective connection of KDD with foreign central securities depositories by means of T2S infrastructure services.