T2S is a project implemented by the Eurosystem with the aim of creating a single securities settlement engine in Europe. T2S will provide European Central Securities Depositories (CSDs) with a centralised technical platform for delivery-versus-payment (DvP) settlement of securities transactions in Central Bank money. For this purpose, CSDs that will join T2S are invited to outsource the settlement process to this common technical platform, whereas the Central Banks will have to open and maintain the relevant cash accounts in T2S platform. It has to be noted that T2S will be just a platform and not a CSD, meaning that CSDs will maintain their contracts with their clients and any obligations derived from such contracts will remain. CSDs will also continue offering to their clients any other services which include custody, asset servicing, corporate actions processing, and tax and regulatory reporting.
Once T2S enters into operation in 2015, a single set of rules and standards will be applied to all transactions across all T2S markets for both domestic and cross-CSD settlement. T2S will thus help to overcome the complexity and fragmentation of the current European market infrastructure. T2S will be neutral with respect to all countries and market infrastructures and all business models adopted by CSDs and market participants. As a result, T2S is expected to facilitate cross-CSD settlement and will enable banks to optimize their liquidity and collateral management.
The Bank of Greece, as both a Central Bank and as the operator of the CSD for Hellenic government securities (BOGS), has actively been involved in T2S from a very early stage back in 2006, when T2S was still a conceptual idea. In May 2010, the BOGS was the first CSD to announce that it intends to join T2S in Migration Wave 1 implying a go-live date on 22 June 2015. In May 2011, the Bank of Greece, under both its capacities, formally joined the project by signing the T2S Framework Agreement.
The Bank of Greece migrated to T2S in June 2015 (Migration Wave1) via SWIFTs value-added-Network (VAN).