T2S (TARGET2-Securities) · Concepts · European Finance Observatory

Roles that need it

CSD (Central securities depository)A central securities depository (CSD) is an entity that operates a securities settlement system and provides the initial recording of securities in book-entry form (notary service) or central maintenance of securities accounts at the top tier. In the EU CSDs are authorised under the Central Securities Depositories Regulation (CSDR).
DVP (Delivery versus payment)Delivery versus payment (DVP) is a settlement mechanism that links the transfer of securities to the transfer of cash, so that delivery happens if and only if payment happens. It removes principal risk in securities settlement and is the standard for trades settled in central securities depositories and TARGET2-Securities (T2S).
ECMS (Eurosystem Collateral Management System)The Eurosystem Collateral Management System (ECMS) is the single platform that euro area central banks use since June 2025 to manage assets pledged as collateral for Eurosystem credit operations. It replaced national systems and applies harmonised standards for corporate actions, triparty and billing.
Settlement finalitySettlement finality is the point at which a transfer of securities or cash becomes irrevocable and unconditional, even if a participant later becomes insolvent. In the EU the Settlement Finality Directive protects transfer orders entered into designated payment and securities settlement systems.

Updated 31 Oct 2026.