Tuesday’s Wave 2 go-live of the European Central Bank’s Target2Securities threatens to be something of a minor event, according to Tom Casteleyn, head of product management for custody, cash and FX at BNY Mellon in.
The postponement of Euroclear’s domestic central securities depositary (CSD) migration, which comprises more than 25 percent of the business intended to be hosted by the T2S platform, has reduced the volume going live in Wave 2 to just a few percentage points.
As a result, for all industry participants that are adapting their systems to incorporate T2S, there will be a longer wait before the benefits emerge from this investment. They will have to adapt their conversion timelines and set new deadlines in response to changes to the T2S timetable.
Despite hiccups in the execution, T2S is a reality that the industry must adapt to and work with, he states. It is here to stay.