2 May 2011

Jean-Michel Godeffroy, chairman of the T2S Programme Board

There are two very important activities for the T2S project in 2011.

Firstly, there is the finalisation of the contractual agreements with the central securities depositories (CSDs) and central banks. Over the last months, thanks to the hard work and cooperation between the T2S Team and the CSDs, we are now almost there. By the end of May, we will be ready to send the Framework Agreement to the European Securities and Markets Authority and to the T2S Advisory Group for feedback. This is to ensure that there are no unintended regulatory obstacles that prevent CSDs from signing the Agreement and that market participants – which often have back-to-back contracts with their CSDs – are comfortable with the terms and conditions. Once the feedback from regulators and market participants has been taken on board, a final version of the Framework Agreement will be submitted to the Governing Council for approval in July. Signing ceremonies are then planned for later this year, in November, which will mark a major milestone in the project.

The UDFS is the most comprehensive description yet of the services that T2S will provide to users. It also implements the User Requirements Document (URD).

Secondly, and of no less importance, there is the completion of the User Detailed Functional Specifications (UDFS). As with the Framework Agreement, a vast amount of resources from the T2S team, as well as from the CSDs and market participants, have been dedicated to this deliverable over the past 12 months. The UDFS is the most comprehensive description yet of the services that T2S will provide to users. It also implements the User Requirements Document (URD).

If delivering T2S were to be compared to crossing a river, the URD would be the first stepping stone to be used, followed by the General Functional Specifications. With each step, the river would get deeper and the stepping stones taller and sturdier. The UDFS would be the tallest and sturdiest of them all, being situated right in the middle of the deepest part of the river. After the UDFS had been passed, the river would become shallower, with only the smaller stepping stones of the Business Process Description document and the User Handbook left.

Indeed, I would like to draw your attention to the fact that the consultation process will last until the end of May.

Given that the first version of the UDFS was made available for market consultation at the end of March, it will be of no surprise that this spring issue of T2S Online is devoted entirely to the UDFS. Indeed, I would like to draw your attention to the fact that the consultation process will last until the end of May. Although there were some dedicated workshops with market participants during the drafting stage, it is especially important that the market as a whole has an opportunity to participate, so I cannot emphasise enough that you should take the time to read this document and to forward us your comments.

Admittedly, with more pages than Tolstoy’s War and Peace, it is not exactly ideal bedtime reading. But since it describes all of the interactions between T2S and the CSDs and their market participants, a high-quality UDFS will be a key factor in a CSD’s decision on how best to reshape its system.

You need to check that T2S will actually provide the full range of services that you expect, and that you can adapt your own IT systems in the way that you want

Why should you comment? Well, if you do not, you risk that someone else may decide as to whether “your” reshaping option is possible from a technical point of view. In addition, you need to check that T2S will actually provide the full range of services that you expect, and that you can adapt your own IT systems in the way that you want. For more details on the market consultation, I would encourage you to read Bayle’s View later in this issue.

We are now past the halfway point in the project and remain well on track to “go live” in September 2014.

Lastly, I would like to point out that the first version of the UDFS was completed in accordance with the timetable specified in the T2S project plan. We are now past the halfway point in the project and remain well on track to “go live” in September 2014.

I sincerely hope you enjoy this issue