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Pricing structure

The T2S pricing structure illustrates how many different settlement service items will be charged for, and what proportion of costs will be recovered by information services, i .e. reports and queries. The pricing structure has been discussed with the market on many occasions over several years, in particular through the T2S Advisory Group and the T2S Information Sessions.

The main challenge was to find a balance between the wish of the T2S Programme Board to have a resource-based pricing structure in order to ensure that T2S IT resources are efficiently used, and the strong preference of the market for a “lean” pricing structure. As part of the compromise, a number of items will be priced at zero at the beginning, on the understanding that this can be changed at any time to reflect resource issues if needed. The list of items, together with their price relative to the delivery-versus-payment (DVP) charge, is shown in the chart below.

Service items DVP weight factor Explanation
Settlement services (75% of T2S income)
Delivery versus payment 100% per instruction*
Free of payment/payment free of delivery 60% per instruction*
Account allocation 20% per instruction*
Matching 20% per instruction*
Intra-position/intra-balance movement 40% per transaction
Auto-collateralisation service with payment bank 100% per transaction, charged to the collateral provider
Internal T2S liquidity transfer 60% per transfer
Daytime settlement process 20% surcharge per instruction*
Intended settlement day failed transaction 100% surcharge per business day failed – both sides*
**Auto-collateralisation service with NCB 0% per transaction, charged to the collateral provider
**Instruction marked with “top/high priority” 0% surcharge per instruction*
**Cancellation 0% per instruction*
**Settlement modification 0% per instruction*
Information services (25% of T2S income)
A2A queries and reports to be decided  
U2A queries to be decided  
Message subscription services to be decided  
Account management services
**Securities account 0% Fee options:
a) monthly fee per ISIN in the account or
b) monthly fee per account
**Fee per cash account 0% Monthly
* Two instructions per transaction will be charged.
** The price for these items will initially be set at zero, presuming that actual usage will be within an expected consumption pattern. However, should there be an unexpected use of the IT system resources which adversely affects T2S performance, charging for these items will be reconsidered. Such a review will occur at regular intervals.

In consultation with the market, it was also decided not to include in the scope of the T2S tariff structure the costs for network connectivity. These costs will be covered separately by the individual CSDs, which will choose amongst the network providers selected by the Eurosystem.