T2S: CSDs confirm wave three readiness

VP Securities and VP Lux confirm client readiness, while Euroclear says migration is on track.

VP Securities and VP Lux have confirmed that all of their clients have indicated their readiness ahead of the next wave of T2S implementation.

Euroclear also confirmed that its central securities depositories in Belgium, France and the Netherlands remain on track to migrate to the T2S platform on September 12

The third wave of CSDs rolling out T2S accounts for around 25% of the volumes in Europe, making it the biggest implementation so far.

In a statement, the Danish and Luxembourg VP’s confirmed that all clients had indicated their readiness ahead of the third wave of implementation due to take place in September.

The two CSDs have also confirmed that final pre-migration activities have also been successfully completed.

Initially proposed in 2006 by the ECB, the T2S initiative was designed to create a harmonised European settlement platform with settlement costs proposed at a maximum of 15 cents per settlement.

Euroclear was initially supposed to migrate over to T2S in March 2016, however announced a delay towards the end of 2015, saying it needed more time for a ‘safe and stable migration’.

Last month Global Custodian reported that Clearstream’s client testing for T2S implementation had suffered a setback in its third set of client issues ahead of its migration in wave four.

The CSD later announced that such delays were caused by external factors and will not cause an adjustment in the migration schedule.

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