Global Custodian Clearing and Settlement Issue 2018 | Page 27

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The go-live of TARGET2 Securities for the Eurozone was a
landmark moment for the post-trade industry. Attention
is now shifting towards deriving value from the platform,
and the key to its success could be in the tri-party
collateral management space, writes Joe Parsons.
O
n 18 September 2018 a landmark
moment occurred in the history of
European market infrastructure.
This date represented the end-point of an
arduous 11-year programme to harmonise
Europe’s post-trade settlement activities
as the final Eurozone markets went live
on TARGET2 Securities (T2S).
Outside of its primary mission of settle-
ment harmonisation, the pan-European
platform has also been publicised as ben-
efiting collateral management, allowing
banks to pool their assets and securities
across markets on a single venue for settle-
ment. These advantages include reduced
collateral buffers and optimisation tools.
However, the jury is still out on whether
banks are actually reaping these benefi