The European Central Bank looks set to delay the consolidation of the Target2 real-time gross settlement mechanism with the T2S securities settlement platform after consultations with market participants.
Initially posited in 2015, the ECB's Vison20/20 project for the harmonisation and integration of European cash and securities settlement services represents a major upheaval for European banks.
However, the pressures caused by the ongoing pandemic and Swift's recent move to delay the timetable for the introduction of the new ISO 20022 messaging standard has led European baking groups to push for a 12-month pause in the consolidation effort.
In a statement, the ECB says: "The Market Infrastructure Board has reviewed the timeline of the T2-T2S consolidation project and has concluded that postponing its go-live by one year, from November 2021 to November 2022, would best accommodate the industry’s preferences."
The decision on a possible extension of the timeline will be taken by the Governing Council of the European Central Bank (ECB) and is expected by the end of July 2020.