What does it cost to use T2S?
The delivery-versus-payment fee in T2S is €0.195 per instruction, plus a temporary surcharge of €0.04 per instruction (see full price list below). This price came into effect on 1 January 2019, following a decision by the Governing Council of the ECB on 21 June 2018.
- Full cost recovery. The fees charged to participants using the T2S platform are calculated to cover all costs, and there is no profit margin.
- Simplicity. The market expressed a preference for a simple pricing structure, where each service can be easily identified.
- Equal prices for all CSDs, regardless of the volumes settled in T2S.
- Stability of the pricing policy and fee structure, i.e. the prices should not change often or by much, i.e. only when necessary to achieve full cost recovery.
The T2S pricing structure resulted from a thorough discussion with the market. It balances the market’s strong preference for simplicity with the need to pay for resources used in providing T2S services.
There are several billable items (service items) that are charged to the users of T2S. For simplicity they are grouped into 15 tariff items arranged in three categories: settlement services, information services and account management services. See Mapping of service items with T2S price list for the full list of service items.
The price list below shows the price of each service and its price relative to the DvP price. A number of items are free, on the understanding that this can be changed according to the pricing principles.
Network connectivity costs are not featured in the T2S pricing structure. These costs are covered separately by each CSD, which can choose from among the network providers selected by the Eurosystem.
|Price||Price as a percentage of DvP price||Explanation|
|Delivery versus payment (DvP)||23.5 cents||100%||per instruction†|
|Free of payment / payment free delivery||14.1 cents||60%||per instruction†|
|Account allocation||4.7 cents||20%||per instruction†|
|Matching||4.7 cents||20%||per instruction†|
|Intra-position/intra-balance movement||9.4 cents||40%||per transaction|
|Auto-collateralisation service with payment bank||23.5 cents||100%||per transaction, charged to the collateral provider††|
|Internal T2S liquidity transfer||14.1 cents||60%||per transfer|
|Daytime settlement process||4.7 cents||20%||surcharge per instruction†|
|Daytime – last two hours, 2pm – 4pm||Free*||0%||surcharge per instruction†|
|Intended settlement day failed transaction||23.5 cents||100%||surcharge per business day failed – both sides†|
|Auto-collateralisation service with NCB||Free*||0%||per transaction, charged to the collateral provider|
|Instruction marked with “top/high priority”||Free*||0%||surcharge per instruction†|
|Settlement modification||Free*||0%||per instruction†|
|A2A reports||0.4 cent||N/A||Per business item in any A2A report generated|
|A2A queries||0.7 cent||Per queried business item in any A2A query generated|
|U2A queries||10 cent||Per executed search function|
|Message bundled into a file||0.4 cent||Per message in each file containing bundled messages|
|Transmissions||1.2 cents||Per transmission|
|Account management services|
|Securities account||Free**||0%||Fee options: a) monthly fee per ISIN in the account or b) monthly fee per account|
|Fee per cash account||Free***||0%||Monthly|
|† Two instructions per transaction will be charged.|
|†† Auto-collateralisation with payment bank (i.e. client-collateralisation) is charged in line with the use of T2S resources; and only the collateral provider is charged, in accordance with the T2S Framework Agreement. One collateralisation item plus both instructions of each auto-collateralisation leg are charged per ISIN and providing account, i.e. X cents * 5 (i.e. 1 collateralisation item + 4 settlement instructions) for each auto-collateralisation service with a payment bank, where X is the price of settlement instructions and collateralisation items.|
|* The resources dedicated to operating T2S are calculated in accordance with the expected consumption pattern, i.e. the anticipated distribution of settlement volumes during night-/day-time and peak hours. These items have been priced as free of charge, presuming that actual use of T2S will remain within this expected consumption pattern over time. However, should there be greater than expected use of T2S resources and if the volume distribution pattern is different from expected, thus adversely affecting T2S performance, a charge for these items will be reconsidered. The Eurosystem regularly reviews the actual volumes against expected patterns for the different items.|
|** Account management services for securities accounts are set at zero and will not be changed until the end of the cost-recovery period, at the earliest.|
|*** Account management services for T2S dedicated cash accounts (DCAs) are not charged, assuming that the actual number and use of DCAs will remain within expected consumption patterns. However, should DCAs consume more T2S resources than expected, thus adversely affecting T2S performance, charging for these items will be reconsidered. The Eurosystem regularly reviews the matter together with the central banks operating the DCAs.|