TARGET2-Securities
T2SACTIVEOperator: Eurosystem (4CB platform)
Overseer: European Central Bank (ECB)
Legal basis: ECB Guideline on TARGET (ECB/2022/8), Central Securities Depositories Regulation (CSDR)
Launched: Jun 22, 2015
Quick reference: View technical card →
Executive Summary
TARGET2-Securities (T2S) is the Eurosystem's pan-European platform for securities settlement in central bank money. It enables Delivery-versus-Payment (DVP) settlement across participating Central Securities Depositories (CSDs), harmonising post-trade processing for European securities markets. T2S was integrated into the unified TARGET platform in March 2023.
How It Works
Settlement Model
Delivery-versus-Payment (DVP) in central bank money
Message Standard
ISO 20022 (sese messages for settlement instructions)
Max Transaction
No limit
Clearing Mechanism
Direct DVP settlement — no separate clearing for the settlement leg (though trades may be cleared by CCPs before reaching T2S)
Settlement Cycle
Night-time settlement (NTS) cycle + real-time settlement during daytime hours. Real-time settlement runs during T2 operating hours.
Message Flow
CSDs submit settlement instructions to T2S on behalf of their participants. T2S matches instructions between counterparties, checks securities availability in the CSD account and cash availability in the Dedicated Cash Account. On successful matching and availability, T2S simultaneously debits/credits securities and cash, achieving DVP finality.
Typical Use Cases
Government bond settlement, corporate bond settlement, equity settlement, collateral transfers, repo transactions
Key Data
Participants & Access
Membership Requirements
Participation through a connected CSD. 21 European CSDs currently connected including Euroclear, Clearstream, Monte Titoli, Iberclear.
Governance & Risk
Governance Model
Part of the TARGET platform under ECB governance. CSD Steering Group provides market input. T2S Advisory Group includes market participants.
Concentration Risk
High — T2S is the dominant pan-European securities settlement platform. National CSD alternatives exist but are converging onto T2S.
Resilience & Business Continuity
Eurosystem dual-site infrastructure. Integrated with the TARGET platform for unified resilience.
Dispute Resolution
TARGET framework applies. Settlement fails are managed through CSD-level procedures and penalty mechanisms under CSDR.
Pricing
T2S pricing per settlement instruction, with volume-based discounts.
Transaction fee: €0.235 per DVP instruction (basic)
Source: European Central Bank
Connectivity
cash settlement via
T2 / TARGET
Cash leg of DVP settlement uses T2 Dedicated Cash Accounts
Intelligence (55)
NewsJun 27, 2026
T2 Settles €1.93 Trillion Daily in 2025 as Danish Krone Joins TARGET
T2 maintained 99.8% technical availability in 2025, with two incidents classified as having major impact.
NewsJun 25, 2026
SWIFT Ends IPLA and SIL Support on June 30, Affecting T2 and CHAPS Connectivity
Red Hat's decision to end support for Fuse, the open-source integration framework underpinning SIL, is the primary trigger. IPLA and SIL cannot fully support ISO 20022's structured data requirements that T2, CHAPS, and TIPS now mandate.
RegulationJun 24, 2026
EU Parliament Committee Approves Digital Euro Framework 43-14
The ECON Committee's 43-14 vote clears the digital euro regulation for trilogue negotiations, advancing the ECB's timeline toward a 2029 public launch with offline privacy protections and per-user holding limits designed to shield commercial bank deposits.
NewsJun 15, 2026
T2 Settles €1.93 Trillion Daily in 2025
T2 achieved 99.8 percent technical availability across the year. TIPS maintained 99.99 percent uptime. The Eurosystem reported two significant disruptions during 2025 that required follow-up action plans.
NewsJun 13, 2026
ECB Governing Council Approves Weekend Settlement Windows for T2 Liquidity Management
The Eurosystem will introduce short T2 settlement windows during most weekends within two years, addressing the liquidity management gap created by TIPS operating around the clock while T2 remains closed on weekends and holidays.
RegulationJun 13, 2026
PSD3 Plenary Vote Excluded from June Strasbourg Session
The next available plenary window is the July session. If Official Journal publication follows in September, PSR would apply from approximately March 2028.
RegulationJun 6, 2026
Eurosystem Commits to Weekend Settlement Windows for T2 Within Two Years
The Eurosystem published a phased roadmap on May 28 for extending T2 operating hours, committing to weekend settlement windows within two years. Medium-term options include near-24/7 CLM operation and extending RTGS toward a 24/5 schedule, with a second market consultation planned for late 2026 or early 2027.
AnalysisJun 4, 2026
ECB Excess Reserves Remuneration at Deposit Facility Rate Takes Effect June 17
An ECB Governing Council decision replaces the flat zero-percent return on surplus liquidity with the prevailing deposit rate, improving the economics of holding overnight settlement funds across the TARGET platform from mid-June 2026.
NewsJun 2, 2026
ECB Sets Roadmap to Extend T2 Settlement to Weekends and Holidays
The Eurosystem announced on May 28 a phased approach to extending T2 operating hours, starting with weekend and holiday settlement windows for liquidity transfers and automatic remuneration of excess TIPS liquidity.
NewsMay 29, 2026
BIS Project Agorá Completes Tokenized Settlement Prototype, Eight Central Banks Plan Real-Value Tests
Participating central banks include the Federal Reserve Bank of New York, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.
Reference Documents (2)
TARGET Operating Schedule
ECB · operating_schedule · v2026 · Jan 1, 2026
CBPR+ Roadmap Beyond November 2025
SWIFT · regulatory_text · vSeptember 2025 · Nov 15, 2026
SEPA Credit TransferSCT
European Payments Council (EPC)
SEPA Direct Debit CoreSDD Core
European Payments Council (EPC)
SEPA Direct Debit Business-to-BusinessSDD B2B
European Payments Council (EPC)
SEPA Instant Credit TransferSCT Inst
European Payments Council (EPC)
TARGET Ecosystem OverviewTARGET
Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
T2 (TARGET RTGS)T2
Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
TARGET Instant Payment SettlementTIPS
Eurosystem (Banca d'Italia lead development)
Eurosystem Collateral Management SystemECMS
Eurosystem (Banque de France lead development)
UK Payment InfrastructureUK Payments
Pay.UK (scheme management), Bank of England (RTGS), VocaLink/Mastercard (processing)