The T2S project is owned and operated by the Eurosystem with the close involvement of all relevant stakeholders in the governance framework. The day-to-day conduct of the project falls under the responsibility of the Market Infrastructure Board that meets under the composition of the T2S Board. The Board is a management body appointed by the Governing Council and supported by the ECB for the secretariat function.
Since 1 July 2012, the governance structure shown below has applied. It was implemented following the signing of the contractual agreements between the Eurosystem and the central securities depositories (CSDs) (Framework Agreement - FA) and between the Eurosystem and the non-euro central banks willing to settle their local currencies in T2S (Currency Participation Agreement - CPA). This governance structure ensures that all T2S stakeholders, central banks, CSDs and their users are well prepared for the successful migration to T2S. This structure has been preserved following the launch of T2S in the summer of 2015 and also applies during live operations of T2S.
Given the importance of T2S for the Eurosystem and for European integration in general, the overall responsibility for T2S is held by the ECB decision- making bodies, i.e. the Governing Council and the Executive Board. Regarding T2S, the Governing Council is responsible for the direction, overall management and control of T2S. The Governing Council has assigned a number of managerial tasks to the T2S Board.
For general information on the ECB decision-making bodies, their role and composition, please visit the Governing Council and Executive Board webpages. To view Governing Council Decisions and press releases on T2S click here.
The Market Infrastructure Board is a streamlined management body in charge of developing proposals to present to the Governing Council on key issues in the field of market infrastructure. The MIB is responsible for the operation and change management of Eurosystem market infrastructure services (i.e. TARGET2 and T2S) and, subject to the Governing Council’s approval, for possible new market infrastructure projects. The MIB can meet under different compositions, including the T2S Board.
This group is composed of senior managers from all non-euro NCBs that signed the Currency Participation Agreement.
This group is composed of governors of non-euro area national central banks with their currencies available in T2S, plus an equal number of members of the ECB Governing Council. It meets only in exceptional circumstances.
The CSD Steering Group (CSD) is responsible for articulating and coordinating the views of participating CSDs. The CSG can give its advice and make resolutions on any issue related to T2S and, in particular, on issues related to the FA and its schedules, issues of major interest for T2S (pricing, risk, etc.) and the prioritisation of change requests.
The T2S Advisory Group (AG) provides advice to the Eurosystem on T2S-related issues, to ensure that T2S is developed and implemented according to market needs. To this end, the AG is made up of representatives from all stakeholders, i.e. participating CSDs, banks and national central banks in equal number. In particular, the AG addresses T2S issues related to policy, pricing, governance, and harmonisation in the field of securities settlement.
The AG is supported by four sub-groups: the Harmonisation Steering Group (HSG), the Sub-group on Message Standardisation, the Sub-group on Corporate Actions and the Task Force on adaptation to cross-CSD settlement in T2S.
At the steering level, the T2S Board and the CSD Steering Group are supported by technical groups. The Project Managers Group ensures that T2S and subsequent releases go live and that CSDs and central banks are adequately prepared in a timely manner. The Change Review Group analyses requests for changes to T2S and proposes priority rankings to determine which changes should be considered within a particular T2S release. The Operations Managers Group prepares the operational procedures and reviews T2S operations after T2S and subsequent releases go live.
The National User Groups (NUGs) form the link between the T2S Advisory Group and the various national markets. To support the development and implementation of T2S, each NUG brings together providers and users of securities settlement services within its respective financial community, and assesses the impact of the T2S functionality on the local market.
Information sessions were organised by the ECB on a regular basis to keep all interested stakeholders updated on the progress made in T2S and to obtain their feedback on current proposals. In early 2016, the T2S Info Sessions were replaced by Focus Sessions, which cover topics of broader interest for market infrastructure.