1. 0 Set-up for Settlement and Auto-collateralisation in T2S T2S Programme Office European Central Bank AG Meeting Frankfurt, 18/19 November 2013 ECB-PUBLIC

2. 1 Organisation’s BIC structure in T2S Varying usages BIC structure Management of settlement flows Management of collateral and liquidity pools

3. 2 Set-up for Settlement and Auto-collateralisation Constraints For covering all scenarios efficiently in T2S, we need flexibility Some constraints are hindering flexibility 1.Legacy BIC structures  Mergers, acquisitions, policies, laws & business strategy/services have led to different BIC set-up in different countries for different organisations 2.Technical constrains in T2S:  The BIC 8 of the owners of the dedicated cash account and securities account: Must be the same for offering Central Bank auto-collateralisation Must not be the same for offering client collateralisation  The securities accounts which are used to provide collateral for auto / client collateralisation must be the same securities accounts which are used for the settlement of securities on that cash account (DCA)

4. 3 Organisation’s BIC structure in T2S How do we find the optimal target BIC structure in T2S? Target BIC structure in T2S Efficient settlement flows Single pools of collateral and liquidity Legacy BIC structure Flexible management of clients for client collateralisation

5. 4 Set-up for Settlement and Auto-collateralisation T2S Paper & next steps T2S PO paper on “Set-up for settlement, auto-collateralisation and client collateralisation in T2S”describes: Set-up of Parties in T2S Management of Settlement Flows Management of Collateral and Liquidity Pools Implementation models A workshop will be held on 29 November 2013 to discuss details (49 out of max 60 registrations received so far) More technical information on the set-up, management of settlement flows, collateral and liquidity pools and implementation models Presentations from NUGs on the discussions around the topic

6. 5 Thank you for your attention www.t2s.eu