The central banks of the euro area, and the non-euro area central banks that decide to settle their currencies in T2S, will be users of the services offered by T2S. The NCBs will hold central bank money accounts on the T2S platform, so that the delivery-versus-payment settlement of securities transactions takes place in central bank money. These accounts will be dedicated to settlement purposes only and will be linked to the cash accounts in the respective real-time gross settlement (RTGS) systems. For settlement in euro, for instance, the T2S platform will be linked to the TARGET2 system, also operated by the Eurosystem.
For detailed information on the services that NCBs provide for the T2S users, please see the T2S info session presentations, which were given in Ljubljana in April 2013.
First, the liquidity management features in T2S and TARGET2, including the T2S interface in TARGET2, are illustrated in the presentation on functional and technical aspects . Second, the fundamentals of central bank money accounts and the operational framework are detailed in the presentation on the operational aspects on the cash side . Last, various legalities relating to euro-denominated cash accounts are outlined in the presentation on the legal framework . NCBs offer users of T2S the integrated settlement of securities transactions in central bank money, both in euro and against other currencies.
T2S has been designed as a multi-currency system. The contractual basis for the participation of currencies in T2S is defined in the Currency Participation Agreement, which was finalised in February 2012. Danmarks Nationalbank signed the Currency Participation Agreement on 20 June 2012 and will make the Danish krone available in T2S in 2018. Some of the other non-euro area central banks have expressed an interest in joining at a later stage, as soon as their markets are ready. Those non-euro area NCBs that sign the Currency Participation Agreement will be involved in the governance of the project, which ensures that NCBs retain control over their currency.