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The National User Groups (NUGs) were set up as part of the governance structure by the Governing Council of the ECB in 2008. The objective of the NUGs is to support the development and implementation of T2S. They form the link between the T2S Advisory Group and the various national markets. Each NUG brings together providers and users of securities settlement services within its respective financial community and assesses the impact of T2S on the local market.
NUGs play a crucial role in harmonisation activities as the T2S vision is constrained by national differences (for further information see Bayle’s view – T2S and harmonisation, T2S OnLine No 6). The NUGs are chaired by members of the Advisory Group, ensuring that the national and European discussions are closely linked. At the European level, all the secretaries of the NUGs form the T2S Experts Network. They meet on a regular basis to discuss issues that emerge during the meetings of the NUGs and to obtain the latest updates on the project status from the ECB.
In this issue of T2S OnLine, we are happy to introduce the NUGs as they play a very important role in the T2S project. Below you will find a list of all of the NUGs along with a short quote by their respective chairperson. We also encourage you to visit the individual web pages of the NUGs via the links provided below.
“T2S has great potential to increase efficiency and harmonisation in the European securities settlement infrastructure.”
Quote by Walter Hoffenberg, Oesterreichische Nationalbank
“Belgium is an important centre for securities-related services. Two CSDs, an ICSD and a major global custodian are located in Belgium. The Belgian National User Group can therefore rely on a wide range of expertise.”
Quote by Yvan Timmermans, Nationale Bank van België/Banque Nationale de Belgique
“T2S is a unique opportunity to promote harmonisation and efficiency in the EU post-trading industry. These issues were addressed by the Giovannini barriers but are overdue in terms of being implemented. Another challenge, equally important to the Cypriot market, is that T2S maintains a level playing field and ensures the viability of smaller markets.”
Quote by Stelios Georgakis, Central Bank of Cyprus
“In the good spirit of the constructive collaboration with the T2S team, the Danish NUG will continue pursuing an adequate model for the Danish market participants focusing on maximising its benefits to the ultimate capital market beneficiaries, being the issuer and the end-investor, and ensuring the level playing field in T2S.”
Quote by Johannes Luef, CEO VP Securities
“It is a pleasure for me to chair the German National User Group, representing one of the most important markets in Europe. T2S as a project for the market needs the dialogue and the constructive contributions of its most active stakeholders to be a Europe-wide success.”
Quote by Jochen Metzger, Deutsche Bundesbank
“In Ireland we were early movers in terms of our securities infrastructure and outsourced securities settlement some years ago. This early outsourcing is now creating some complexities in the T2S context. Naturally, we are working with the T2S team to mitigate these.”
Quote by Michael Bushe, Central Bank of Ireland
“T2S entails benefits beyond cost savings, especially where markets operate under varied securities account structures. The Greek NUG places great importance on the expected efficiency gains, enhanced liquidity and the achievement of economies of scope stemming from the harmonisation of securities settlement in Europe. Moreover, market participants look forward to the new business opportunities that the single and borderless securities settlement infrastructure will create to the benefit of all stakeholders.”
Quote by Michael Michalopoulos, Bank of Greece
“After the euro changeover in Estonia, the highest priorities for the EE NUG are the various technical and legal issues related to the direct holding markets specificities, including account allocation, pricing, and analysing possible ways of joining the T2S platform.”
Quote by Kadri Martin, Eesti Pank
“The role of FIN NUG is to distribute information on T2S to the Finnish market and convey the market’s views to the advisory and decision-making bodies of T2S. In general, this role is not likely to change, but the focus will shift from general policies to implementation and standardisation issues, according to the development of the T2S project. The main challenge ahead is how to influence both T2S and the national market model so that also the Finnish market would benefit from the introduction of T2S.”
Quote by Risto Koponen, Suomen Pankki – Finlands Bank
“I think indeed that T2S is not only a project aiming at proposing the same securities settlement services through Europe, but it is also the catalyst for a greater integration of post-trading activities in Europe: harmonisation in this sector will be key in the coming months to bring the maximum benefits from T2S. I will personally follow very closely the debates on harmonisation and I expect the FNUG to use the experiences gained from the Euro Settlement for Euronext-zone Securities (ESES) project and to be proactive.”
Quote by Yvon Lucas, Banque de France
"In Hungary the CSD (KELER) and the central bank have set up a joint project to analyze developments and prepare for T2S. Although market participants were kept informed also in the past, the two institutions plan to set up a formal national user group in the coming months."
Quote by Gergely Kóczán, Magyar Nemzeti Bank
“Competition is a key factor for T2S success, but there is no competition without harmonisation of settlement rules and a true level playing field among competitors. The IT NUG is currently analysing the competitive scenario in T2S and is ready to push the implementation of harmonised standards at the national level in order to contribute to the efficiency of the post-trading sector in Europe.”
Quote by Fabrizio Palmisani, Banca d’Italia
“The topical issues for the Latvian NUG are the completion of the overall impact assessment for the Latvian securities market and evaluation of the legislative changes. Business decisions regarding the type of participation of banking groups present in Latvia in T2S and further progress of Latvia towards the introduction of the euro are other challenges to be addressed in the next phases of the project.”
Quote by Egons Gailitis, Latvijas Banka
“T2S for the Lithuanian market is, first of all, a change in the securities settlement market practice. The main advantage of this is that it will be a pan-European practice.”
Quote by Tomas Karpavičius, Lietuvos bankas
“The Luxembourg NUG aims to serve as an interface between the T2S project and local financial actors, but since Luxembourg is the leading European center for the processing and administration of investment funds, a particular focus is put on matters that have an impact on these specific actors and on interacting with the related local industry associations.”
Quote by Pierre Thissen (Banque centrale du Luxembourg) and Carlo Matagne (Banque et Caisse d'Epargne de l'Etat)
“Our NUG-NL contributes to T2S bearing in mind the requests and wishes from the Dutch market community to have a safe, sound and efficient infrastructure in place for both domestic and cross-border securities settlement.”
Quote by Jaap Mauritz, De Nederlandsche Bank
“Participation of the Polish zloty in T2S is currently the subject of debate in the Polish National User Group. Poland plans to join the euro area in the foreseeable future, although no firm date has yet been declared and accession will probably not happen before 2016-17. Declaration of participation of the Polish currency in T2S would, therefore, cause Narodowy Bank Polski to bear the cost of developing an interface that would be used for Polish zloty settlements for a rather limited period of time only.”
Quote by Iwona Sroka, Krajowy Depozyt Papierów Wartościowych
“T2S will consolidate securities post-trade infrastructure and promote financial integration in Europe. As a public undertaking of the Eurosystem, a successful T2S is expected to provide a level playing field to all markets, ensuring long-term net benefits to all stakeholders.”
Quote by Antonio Garcia, Banco de Portugal
“It is thanks to the strong backing of our NUG participants that Depozitarul Central agreed to be in the first migration wave of the T2S implementation. In the next meetings of T2S RONUG, we will analyse the possibility of making the Romanian currency available in T2S and we will focus on the requirements for harmonisation of corporate actions, collateral management and other services.”
Quote by Adriana Tanasoiu, CEO Depozitarul Central
“Our mission is to consult the market on all issues relating to the development of T2S. We want to achieve the strong involvement of our stakeholders in the discussions to clarify a number of open issues related to T2S.”
Quote by Peter Holicka, Národná banka Slovenska
“The Slovenian T2S National Users Group is a place where different views meet and melt into a harmonised idea – the integration of the Slovenian market in T2S.”
Quote by Peter Centrih, Banka Slovenije
“The Spanish NUG is a forum where the main T2S stakeholders can express their opinions, interests and concerns with regard to the different T2S aspects and assess the impact of T2S in the Spanish market. A proposed reform to Spain’s securities clearing, settlement and registry system is underway and it will contribute to the harmonisation and integration of the European securities markets.”
Quote by Susana Núñez, Banco de España
“One of the key challenges for the SWENUG is to find an acceptable solution for the end-investor account structure to fit with T2S. We are currently evaluating various alternatives for efficiently setting up these accounts in the T2S context. Another important factor for the SWENUG to consider before deciding whether to join T2S or not is the cost of using T2S. How high will the combined cost of CSD and T2S be? Other issues of relevance for the users are that both the CSDs and the central banks could reach acceptable agreements with the ECB regarding the outsourcing of the accounts and the currency to T2S.”
Quote by Göran Fors, SEB
“The goal of the T2S SNUG is to make sure that Swiss market participants as a whole will be well prepared to join T2S in 2015. The fact that Switzerland is a non-EU member with the Swiss Franc (CHF) as its currency, adds a layer of complexity that other would-be participants do not face. SIX Securities Services continues to explore with the SNB and ECB the most suitable access option to T2S, using existing functionality and infrastructure in the form of SIX SIS Ltd – its subsidiary responsible for settlement.”
Quote by Hans Däppen, SIX SIS
“The Giovannini reports were published almost a decade ago, but we still have many barriers to full cross-border securities settlement in Europe. T2S has focused both the public and private sectors on a practical way forward, and as part of this the UK market is keen to work towards borderless settlement.”
Quote by Henry Raschen, Head of Regulatory and Industry Affairs Europe, HSBC Securities Services
