Today the Council of Latvijas Banka approved amendments to the Regulation "Procedure for Participation in TARGET2-Latvija" of 4 November 2010 (to take effect on 22 June 2015; hereinafter, the amendments).

The amendments have been drafted, since TARGET2-Securities (T2S) platform, initiated by the Eurosystem, will go live on 22 June 2015, enabling the provision of harmonised and standardised securities and payment settlement services to the European central securities depositories and their customers on a delivery versus payment basis in an integrated technical environment.

The amendments stipulate that participants will be able to open special cash accounts (dedicated cash accounts) in TARGET2-Latvija to be transferred to T2S platform for the execution of cash leg settlement, and to receive auto-collateral from Latvijas Banka on request for the purpose of optimising the settlement of intraday credit.

The amendments also provide for legal and technical requirements regarding the opening and operation of the dedicated cash accounts, as well as the rights and obligations of the account holders.

The European central securities depositories will migrate to T2S gradually, in four waves, starting on 22 June 2015. The participants of Latvia's securities market will migrate to T2S platform on 6 February 2017, and the relevant preparatory activities have already commenced.