T2S was designed as a multi-currency platform: central banks located outside the euro area can access the platform to carry out securities transactions in their respective national currencies when they sign the Counterparty Participation Agreement (CPA). The Central Bank of Denmark was the first to sign the CPA and in November 2018 it provided the Danish kroner statement on T2S. Safe and efficient resolution systems are a prerequisite for the proper functioning of markets: in particular to ensure the possibility of investing in a single monetary area under the same conditions on all markets, cross-border resolution of financial instruments must be carried out under conditions equivalent to those of national resolution systems. In line with this objective, the Eurosystem has created TARGET2-Securities (T2S), the pan-European multi-currency platform for the settlement of securities transactions in central bank currency. Today, thanks to T2S, securities transactions are carried out in all national markets of the European Union (EU) at the same cost and in the same way, regardless of the investor`s country of origin. The two main documents that make up the T2S T2S contractual framework are the framework agreement for the CSD, which defines its contractual rights and obligations with the Eurosystem, and the monetary participation agreement that governs the relationship between the Eurosystem and non-euro area central banks wishing to make their currency available in T2S. Today, only the Central Bank of Denmark has signed this agreement and foresees the migration of the Danish krone to T2S in 2018. Currencies other than the euro can be used for settlement in T2S if the relevant central bank is connected to the platform and is ready to add its currency. In addition to the euro, the Danish krone has been available since October 2018 for invoicing in T2S.

In addition, the ECB holds Focus Sessions to keep all interested stakeholders informed of progress on T2S and issues of general interest for market infrastructures and to obtain their views on current proposals. Together with gross settlement systems, securities settlement systems form the basis of the financial structures of modern economies. These systems allow the exchange of financial instruments and their counter-value between market participants. Markets and payment systems General Management Payment systems Directorate of high-value payment systems Division Via Pastrengo, 14 – 00185 Rome With regard to financial aspects, T2S operates according to the principle of cost covering. To enable custodians and large custodian banks to connect and communicate with T2S, the technical solution agreed with users connects them to the platform through identical value-added services for all intermediaries. These services are provided under a competitive system by two connectivity service operators, SWIFT and SIA-COLT, selected following a tendering procedure carried out by the Banca d`Italia on behalf of the Eurosystem. . . .