February 8 (SeeNews) - Slovenia's central bank and the central securities clearing corporation (KDD) have successfully migrated to TARGET2-Securities (TS2), the Eurosystem’s single platform for securities settlement, the central bank said.
As of the migration to T2S, the settlement of all securities transactions concluded within the framework of the regulated market operated by Ljubljana Stock Exchange and securities transactions concluded bilaterally outside the regulated market within the framework of KDD is executed in T2S according to the principle of delivery versus payment, Bank of Slovenia said in a statement on Tuesday.
The central bank and KDD have technically transferred cash accounts and securities accounts to T2S to this end but in operational and legal senses the accounts remain the responsibility of the Bank of Slovenia and KDD.
"The Central Bank acts in T2S as the operator of the national cash component for T2S cash accounts, in which Slovenian market participants are granted access to cash accounts in T2S and intraday loans in euros for the purpose of the settlement of securities transactions. Accordingly, KDD acts in T2S as the operator of the securities settlement system, and has opened securities accounts for its members in T2S to this end", the central bank explained.
Joining T2S grants the Slovenian environment continuity in participating in European harmonisation and integration processes in the post-trade area, Bank of Slovenia added.
"The entire process of adapting the Slovenian environment to T2S has actually been underway since 2008, when the Eurosystem took the decision to build T2S, and numerous activities have been carried out in this process for the purpose of harmonising the functioning of the domestic post-trade segment of the securities market".
Slovenia's central bank anticipates that the inclusion of the Slovenian environment in T2S will lead to an increase in the set of potential investors for Slovenian securities issuers; more efficient execution and a reduction in costs in cross-border securities settlement; improved conditions for increasing the amount of cross-border securities transactions; new services for brokers in the Slovenian securities market and increased competition, among others.