Securities Transfers, 



T2S, or TARGET2-Securities, is not a Central Securities Depository (CSD) but rather a pan-European platform for the settlement of securities transactions from one electronic settlement account to another. It was launched in 2015 by the European Central Bank (ECB) and is operated by the Eurosystem, which consists of the ECB and the central banks of the European Union member states that have adopted the euro as their currency.

The primary goal of T2S is to harmonize and integrate the post-trade landscape in Europe, providing a single platform for settling securities transactions in central bank money across multiple European markets. T2S connects with various CSDs, allowing them to use its services for the settlement of securities transactions.

T2S operates on a Delivery-versus-Payment (DvP) model, ensuring that the transfer of securities and the corresponding payment occur simultaneously. This process reduces settlement risk and enhances the efficiency of securities transactions.

In summary, T2S is not a CSD but a platform that facilitates the settlement of securities transactions across Europe. It works in conjunction with multiple CSDs to provide a more efficient and integrated post-trade infrastructure in the region.

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When investors buy and sell securities the security and payment need to change hands – a process called securities settlement. TARGET2-Securities, or T2S, is a safe platform where the exchange can happen simultaneously, i.e. where delivery versus payment is possible.

To understand how T2S works, please, see the video, for the manual here

Target 2 Securities (T2S) is a platform for the settlement of domestic and cross-border securities transactions in the European Union. It was developed by the Eurosystem, which is the collective of the central banks of the EU countries that have adopted the euro as their currency.

T2S was created to improve the efficiency and cost-effectiveness of securities settlement in the EU by providing a single platform for the settlement of all types of securities, including government bonds, corporate bonds, and equities. It aims to reduce the number of intermediaries involved in the settlement process, which can help to lower costs and reduce the risk of errors or delays.

T2S operates on a "delivery versus payment" (DvP) basis, which means that securities are delivered to the buyer only after payment has been received from the seller. This helps to ensure that securities are transferred safely and securely, reducing the risk of fraud or errors.

In addition to its core settlement function, T2S also offers a range of other services, including asset servicing, safekeeping, and collateral management. These services are designed to help market participants manage their securities portfolio more efficiently and effectively.

Overall, T2S is an important part of the infrastructure that supports the functioning of the European securities market. It helps to ensure that securities transactions are settled quickly, safely, and cost-effectively, which helps to promote confidence and stability in the market.


Clearstream's CASCADE-RS (Real-time Settlement) system is a securities settlement platform designed to facilitate the real-time settlement of German domestic securities, including government bonds, corporate bonds, and equities. It is operated by Clearstream, a leading Central Securities Depository (CSD) and a member of the Deutsche Börse Group.

The CASCADE-RS system streamlines and accelerates the post-trade process for German domestic securities by providing real-time settlement services, which can improve the efficiency and security of securities transactions.

Here's how the CASCADE-RS system operates:

  1. Trading: Investors buy and sell German domestic securities through brokers or trading platforms. Once a trade is executed, the transaction details are sent to a central counterparty (CCP) for clearing.
  2. Clearing: The CCP acts as the buyer for every seller and the seller for every buyer, reducing counterparty risk. It calculates the net obligations of each participant and ensures that they have the required collateral to cover their positions.
  3. Real-time settlement: CASCADE-RS receives the cleared transactions from the CCP and facilitates the settlement process in real-time, rather than waiting for a specific settlement cycle or window. This real-time settlement capability enhances the efficiency and reduces the risk associated with securities transactions.
  4. Delivery-versus-Payment (DvP): CASCADE-RS operates on a DvP model, ensuring that the transfer of securities and the corresponding payment occur simultaneously. This process minimizes settlement risk and promotes the security of securities transactions.
  5. Reconciliation and reporting: CASCADE-RS reconciles the settled transactions and provides reporting services to participants, allowing them to keep track of their positions and transaction details.

By offering real-time settlement services, Clearstream's CASCADE-RS system enables market participants to settle their German domestic securities transactions more efficiently and securely. This innovation in the post-trade process can contribute to a more stable and robust financial ecosystem.

Please get in touch with us if you want to establish a SSS capability for your accounts with us.