T2S performance in 2021

6 May 2022

In 2021 TARGET2-Securities (T2S) settled over 187 million transactions with a total value of €178.3 trillion. These figures represent an annual increase of 6.05% in the total volume and 3.16% in the total value. In 2021 settlement efficiency at end of day reached on average 94.07% in terms of value and 94.34% in terms of volume.

The TARGET2‑Securities Annual Report 2021 looks at how T2S performed over the year and examines the main developments in the system, as well as its risk management and compliance structure.

In 2021 the T2S platform experienced three major incidents, i.e. unplanned interruptions or reductions in the quality of the service. Each incident was followed up with a detailed report, which will contribute to improving the service and reinforcing its capacity to prevent or mitigate such incidents in future.

The report also reviews how T2S implements the Central Securities Depositories Regulation (CSDR) settlement discipline regime to address settlement fails. The T2S Penalty Mechanism was set up in 2020 to calculate and apply cash penalties on matched settlement instructions that failed after their intended settlement date. A dry run of the mechanism took place between 13 September 2021 and 31 January 2022. This was crucial for preparing for the settlement discipline regime, enabling the T2S community to test the mechanism in production conditions and detect a number of issues, which were then fixed ahead of the settlement discipline regime’s entry into force on 1 February 2022.

TARGET2-Securities is the European platform for harmonised securities settlement services. It applies the same settlement rules and tariffs to the 20 CSDs using the system. The platform processes over 700,000 securities transactions on average per day in both euro and Danish kroner.