During the boom, firms and households borrow too much because they ignore the fact that their collective leverage decisions make the economy more vulnerable to  1  See de Bandt, O., P. Hartmann and J.L. Peydró (2009), Systemic risk: An update, in A. Berger et al. (eds.
The launch of T2S will make securities settlement – including collateral mobilisation – safer and more efficient for market participants and central banks alike. With the migration to T2S, a number of operational barriers which currently exist for cross-border settlement will be removed and operational friction will be reduced, allowing collateral to move more easily from where it is, to where it is needed.