The European Central Bank has decided to go ahead with its plans for a pan-European securities settlement system, known as TARGET2-Securities.

A blueprint for the system proposes that central securities depositories to use a common technical service that would execute settlement instructions. T2S would provide delivery versus payment for securities against central bank money. Depositories would maintain their relationships with intermediaries, investors and issuers, as well as their asset servicing function (such as the management of corporate actions).

Based on the analysis of the blueprint, and a feasibility study, as well as input from market participants and public authorities, the governing council of the ECB concluded that the project is feasible and has therefore decided to launch the next phase of the project.

This next phase includes: specifying the governance arrangements of the project; and, launching a public consultation in order to obtain input regarding the user requirements, by the end of April.

The scope of the project will be determined by taking into account the results of the public consultation. The Governing Council will then decide on the subsequent development phase. This decision is expected by early 2008.