One of the key benefits of T2S will be a significant reduction of securities settlement fees in Europe, in particular for cross-border transactions. Due to the current fragmentation of settlement over a multitude of platforms run by different CSDs, settling across borders today still costs many times more than settling within the same country. With T2S, cross-border and domestic transactions will be processed in the same way and therefore at the same price.
Thanks to the economies of scale that come from consolidating settlement volumes from many platforms onto a single platform, T2S will be able to bring down the settlement fee in Europe to one of the lowest in the world. All users, large and small, wherever they are located, will benefit from these cost reductions to the same extent.
Moreover, the introduction of T2S will allow considerable savings in the costs of back-office operations and liquidity and collateral management at the user level. The resulting efficiency gains will be substantial and further benefit the post-trade industry. Indeed, T2S will not only lead to savings on CSD settlement fees but also to a more general reduction of post-trading costs across Europe. Read more in T2S economic impact
The T2S pricing structure is based on a number of key principles on which agreement has been reached with all stakeholders within the T2S Advisory Group. Read more in T2S pricing principles
The Governing Council decided on the final pricing structure in November 2010. This structure illustrates the settlement service items that will be charged for in T2S. See the details of the T2S pricing structure.
Furthermore, based on the current estimate of the T2S costs and the expected settlement volumes, in November 2010 the Governing Council of the ECB decided that – subject to certain conditions – the delivery-versus-payment fee in T2S will be set at 15 cent per instruction. This price will be guaranteed from the start of operations until end-2018. Read more in T2S pricing decision.
As a result of the decisions on the T2S pricing structure as well as the delivery-versus-payment price per instruction, the actual T2S price list has been defined.