Clearstream has released its pricing model for TARGET2-Securities (T2S), addressing market concerns about fees and implementation costs.
The aim is to provide T2S settlement at the lowest possible price by passing on the settlement fee of the European Central Bank (ECB) to its existing and future customers without adding any margin or settlement fee of its own.
In doing so, Clearstream hopes to encourage settlement volume to grow and to keep both domestic and cross-border settlement costs low and in line with the T2S Economic Impact Assessment from the ECB.
Customers will also have the option of a deferred payment making the migration to T2S as flexible and manageable as possible.
CEO of Clearstream Banking, Stefan Lepp, explained that T2S is a key component of European market infrastructure that 22 central securitites depositories, including Clearstream, have committed to over the past months.
He said: “In establishing the cornerstones of a cost model, coupled with a clear strategy based on our industry leading collateral management services, we support our customers in moving towards T2S. Beyond a transparent cost model our customers will also benefit from the combined strength of our German CSD with our international central securities depository in Luxembourg.”
