Being an integrated large-value payment system, TARGET2 will provide for efficiency gains and improved liquidity management by banks. In this regard, I should like to refer to an increased pressure to also have an integrated platform for the settlement of securities transactions in euro.
The Eurosystem is therefore currently examining, in co-ordination with the European Commission and in close co-operation with the market, the feasibility of setting up a Eurosystem infrastructure for the provision of securities settlement services in central bank money. A decision on whether to offer such a service, referred to as “TARGET2-Securities”, is expected in early 2007.