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18 December 2006

Speech Tumpel-Gugerell on TARGET2-Securities





In a meeting with market participants Ms Tumpel-Gugerell, Member of the Executive Board of the ECB, noted “that the euro area still lacks an efficient, integrated securities infrastructure that would support the operation of a single financial market.” Although considerable progress in integrating settlement systems on national level, she criticized that cross-border transactions to remain expensive and inefficient.

“T2S should change the situation substantially. T2S will centralise only the information and functionality required for settling securities transactions. T2S will not subtract competences; it will provide a service to CSDs, at fees calculated in accordance with the cost recovery principle. The CSDs will continue to be responsible for maintaining their relationships with intermediaries, investors and issuers.”

“Eurosystem considers it necessary to provide some incentive and leadership to overcome sectoral or national barriers to clearing and settlement. This is a traditional role for central banks in many countries and is deemed consistent with the mandate of the Eurosystem.”

Full speech


© ECB - European Central Bank


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