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.
T2S, however, will not only bring cost savings, but, thanks to its dynamic effects, will also offer a number of new opportunities to market participants.
In collaboration with the T2S Advisory Group and on the basis of the data provided by the market, in 2008 the Eurosystem published an assessment of the impact of an integrated European post-trading market infrastructure on market participants and social welfare. The study presented a cost-benefit analysis of the introduction of T2S on the different type of stakeholders, i.e. Eurosystem, CSDs, T2S users (various types of intermediaries), issuers and investors and confirmed a significant positive impact of T2S on market participants and on the European economy. Read more in T2S Economic Impact Assessment and T2S Economic Impact Analysis.