ECB Is Forced To Consider Raising Fees For Its T2S Platform
The European Central Bank (ECB) is forced to consider raising fees for its Target 2 Securities (T2S) platform, which started operating in 2015, after the trade failed to reach its projected volumes. Actual volume declined by 3.8% in 2017, when the last of 22 settlement houses hooked up to T2S. Volume was 15.2% below ECB projections in 2015 and 26.3% below expectations in 2016.
The ECB presentation entitled "2018 T2S pricing review" shows that 128.5 million transactions were settled on T2S in 2017, 33.3% below the central bank's projection. Analysts stated, that it would undermine capital market integration that is already being threatened by Britain's exit from the European Union.