TARGET2-Securities offers European central securities depositaries (CSD) and CSDs’ participants centralized settlement of securities transactions on a delivery-versus-payment (DvP) basis in central bank money.
Latvijas Banka ensures settlement of the cash leg of TARGET-Latvia participants’ securities transactions settling in TARGET2-Securities in euro.
Information for participants of TARGET2-Securities
TARGET2-Securities platform is based on a single technical solution which is integrated into TARGET component systems. It enables TARGET participants to use one TARGET2-Securities dedicated cash account to settle for securities held on participant’s securities accounts with any CSD connected to TARGET2-Securities platform.
Latvijas Banka opens and maintains TARGET2-Securities dedicated cash accounts for the participants of TARGET-Latvija pursuant to the "System Rules for Participation in TARGET2-Latvija" (available only in Latvian).
TARGET2-Securities platform participants have access to T2S auto-collateralisation feature – an intraday credit granted by a euro area national central bank when TARGET2-Securities dedicated cash account holder has insufficient funds to settle securities transactions on the TARGET2-Securities platform. Such intraday credit is collateralised either with the securities being purchased, or with securities already held by the buyer on a securities account at a T2S-participating CSD.
ECB publications on T2S auto-collateralisation and the benefits of its use: