The T2S project was officially launched by the Board of Governors on July 17, 2008. The Governing Council mandated the three central banks that had already been involved in the development and operation of T2S under the TARGET2 initiative – Deutsche Bundesbank, Bank of France and Banca d`Italia (a team called 3CB) and Banco de Espaa (4CB). The signing of the T2S Framework Agreement in 2012 was an important step in the project`s timetable. This document laid the legal basis for the participation of DCT in T2S and established the rights and obligations of the Eurosystem and DTCs. Since more than 20 DTCs have signed the framework agreement, more than 99% of the volume of settlements in the euro area has passed through T2S since the conclusion of the gradual migration of markets. The two most important documents constituting the T2S framework of the T2S Treaty are the framework agreement for the DCT establishing its contractual rights and obligations with the Eurosystem and the monetary participation agreement that governs the relations between the Eurosystem and non-euro area central banks that wish to make their currency available in T2S. Today, only the Central Bank of Denmark has signed this agreement and it foresees the migration of the Danish krone to T2S in 2018. Currencies other than the euro can be used for T2S settlement if the central bank concerned is connected to the platform and is ready to add its currency. In addition to the euro, the Danish krone has been available in T2S since October 2018. The T2S single currency participation agreement was conceived as a multi-currency platform: central banks outside the euro area can access the platform to carry out securities transactions in their respective national currencies when they sign the Monetary Participation Agreement (CPA). The Central Bank of Denmark was the first to sign the CPA and to make available the Danish kroner liquidation on T2S in November 2018. Safe and effective settlement systems are a prerequisite for the proper functioning of markets: in particular, in order to guarantee the possibility of investing in a single currency area in all markets under the same conditions, the cross-border settlement of financial instruments must be carried out under conditions equivalent to those of national settlement systems. In line with this objective, the Eurosystem has created TARGET2-Securities (T2S), the pan-European platform for the settlement of securities transactions in central bank currencies.
Today, thanks to T2S, securities transactions are carried out at the same cost and in all national markets of the European Union (EU), regardless of the investor`s country of origin. On 29 October 2018, the Danish krone was the first to be successfully made available for the liquidation of TARGET2-Titles (T2S). TARGET2-Securities (T2S) is the name of the proposed harmonized and centralized centralised central bank currency securities regulation. T2S is a special settlement service, which means that the retention of securities and related services remains a matter of central custodians of securities (DTCs) for which a stake in T2S is optional. The T2S concept is based on an integrated model that combines the settlement of the leg in cash in central bank currency and securities settlement on a common platform through a delivery-for-payment (DVP).