2 December 2010, 15:30-17:00
Eesti Pank, Tallinn

Minutes of the Meeting

Chairman of the meeting: Kadri Martin
Secretary of the meeting: Keiu Sopp

Agenda of the meeting

1. Overview of the general status of the T2S project
2. Events held and further progress
3. Other activities between the CSD Contact Group and CSDs
4. Preparation for the T2S Advisory Group meeting in December
5. T2S EENUG table of priorities/activity plan and annual plan

   1. Overview of the general status of the T2S project

Kadri Martin and Keiu Sopp, representatives of Eesti Pank, gave an overview of the progress made within the T2S project, specifically:

  • approval of the price list - the ECB's Governing Council has conditionally approved the price list for T2S transactions for the first eight years (2014-2022), with the price of 15 euro cents for the DvP instruction;
  • Framework Agreement with CSDs - the agreement shall be submitted to the T2S Advisory Group at the beginning of 2011 and is scheduled to be signed in the autumn of 2011;
  • Network service provider - the legal documentation for the procurement is about to be completed. The selection process is scheduled to commence at the beginning of 2011, with the selection to be made in September 2011;
  • UDFS (User detailed functional specification) - consultation is scheduled for March 2011.

In addition, Kadri Martin and Keiu Sopp gave an overview of the changing role of Eesti Pank upon joining the Eurosystem. In addition to the central bank's role as a catalyst, Eesti Pank, as a Eurosystem central bank, will also serve as the owner of T2S. The market participants were informed that, overall, project governance would not change on the national level. Eesti Pank will continue to co-ordinate and chair the meetings of the T2S Estonian NUG, with the user group supporting market participants in preparing Estonia's positions and pursuing general political aims. Eesti Pank expects the user group members to take more initiative, especially with regard to subjects directly concerning the market participants.

   2. Events held and further progress

2nd workshop on smooth cross-CSD settlement in T2S, 29 October 2010

Kersti Kiop, representative of the ECSD, gave an overview of the consultation which was held in October and surveyed CSDs with regard to their role as registrars of securities. The purpose of the consultation was to determine the potential differences between the settlement procedures of CSDs and T2S that are liable to hinder smooth communication in the future. The ECSD in co-operation with the market participants participated in the survey on behalf of Estonia.

The deadline for the consultation was extended for the market participants. A second consultation on cross-CSD settlement will be held at the beginning of 2011. CSDs will then be expected to provide feedback from a investor CSD perspective. A summary of the consultations will be presented to the T2S Advisory Group in March.

Workshop with direct holding markets, 10 November 2010

A summary of the meeting has been published on the website of the European Central Bank[1].

Julia Segerkrantz and Kristel Vanasaun, representatives of the ECSD, participated at the meeting on behalf of the Estonian NUG.
Technical and legal issues were discussed at the meeting. Main subjects:

  • Data communication between the T2S system and CSDs - the ECB gave an overview of the various options for CSD and T2S data replication. The CSDs have three options for replicating data:
full data replication - a solution where the CSD replicates all or part of the data on the basis of real-time messages;
no data replication - a solution where the CSD's system queries T2S or subscribes to T2S reports for the required data;
partial data replication - a solution where some data are replicated and other data are queried.
Data communication fees make up 25% of the T2S revenue and depend on the speed of data communication. Real-time data exchange via messages is the most expensive solution. At the same time, queries and reports may be ordered as required, at a more favourable price. Ordering end-day reports is the most favourable solution.


Account allocation - the possible definitions for account allocation were discussed. Account allocation is separately brought out in the price list. The objective is to come up with a suitable solution for direct holding markets in order to reduce transactions costs in T2S.

Settlement finality - the CSDs will retain legal responsibility for their securities accounts and the replicated data on accounts. While the CSDs have the option of choosing between two models for joining the T2S platform together with the market participants:

1. the "all-in model", where all end-investor accounts are registered with the T2S platform;
2. the "layered model", where the end-investor accounts are located in the local CSD,
the layered model contains a contradiction of settlement finality between T2S and the CSD systems. As regards T2S, a settlement is considered final when the entries have been made in T2S. In actual fact, the transaction will not be final until settlement in the CSD system. At the same time, the T2S Team is of the opinion that no rules should be stipulated or developed for settlement finality by the team, with the corresponding legal framework to be established on a national level instead.


Julia Segerkrantz added that the meeting was constructive and useful. In addition, the ECSD has discussed the possibility of data exchange and co-operation with Nordic CSDs who have taken a step further in their T2S analyses.

The ECSD is planning to hold a brainstorming session for EENUG members in February 2011, aiming at formulating an opinion of the most suitable model for the Estonian market to join T2S.

T2S Expert Network meeting, 17 November 2010

Kaire Torsus, representative of Eesti Pank, gave an overview of the Expert Network meeting, which discussed the following subjects:

  • pricing - the new price list was introduced. In addition, an overview was given of the changes introduced and decisions made for the purpose of establishing the price list, including pricing structure, change of proportion, extension of the cost recovery period;
  • smooth cross-CSD settlement in T2S - the meeting discussed smooth cross-CSD settlement and announced the extension of the deadline for market consultation;
  • settlement day - an overview was given of the results of the discussions on the settlement day of T2S.

In addition, an overview was given of the agenda of the T2S Advisory Group meeting to be held on December 6-7: matching fields, transparency of information on the investor level, smooth cross-CSD settlement and political issues, including governance, pricing and harmonisation.

   3. Other activities between the CSD Contact Group and CSDs

Two CSD Contact Group meetings were held after the EENUG meeting in September. The ECSD had no possibility to participate at these meetings.
Julia Segerkrantz reported that ECSD had received a summary of the first meeting, according to which all main subjects were included in the agenda of the T2S Advisory Group.

Main subjects

  • Governance - future project governance is still to be solved, with a new proposal to be made to the T2S Advisory Group regarding changes in governance after signing of the Framework Agreement.
  • CSD Steering Group - the group is planned to be established upon the signing of the Framework Agreement with the CSDs, aiming at protecting the interests of the CSDs, advising the T2S Programme Board and making proposals. The steering group will consist of the members of the management board of the CSDs who will sign the Framework Agreement, up to six non-voting observers approved by the Governing Council and the T2S Programme Board, where only the chairman has the right to vote.

Julia Segerkrantz commented on the progress of the Framework Agreement, including the consulting of the CESR. In its feedback, the CESR tends to support the ECB and the Eurosystem. The CSDs are of the opinion that the obligations of and the requirements established for the CSDs are imbalanced in the agreement.

   4. Preparation for the T2S Advisory Group meeting in December

The agenda of the T2S Advisory Group meeting was discussed: pricing, governance, account structure, connectivity and matching fields. The NUG is not obliged to express an official opinion on any topic. Still, the progress needs to be monitored, the participants decided.

   5. T2S EENUG table of priorities/activity plan and annual plan

The EENUG table of priorities/activity plan

The table of priority subjects for EENUG was approved, with the role of the key responsible parties for several processes yet to be determined. The purpose of the key responsible party is to closely monitor the development trends on the corresponding subjects, and to inform EENUG thereof.

T2S annual plan

EENUG approved the preliminary plan for the meetings to be held in 2011.

T2S events

The upcoming events and the updated T2S annual plan were reviewed. The next EENUG meeting is scheduled for 3 March 2011.

The representatives of Eesti Pank informed EENUG members of the upcoming events:

-  T2S Advisory Group on December 6-7 in Frankfurt
-  Info session on 25 January 2011 in Frankfurt


In addition, the meeting with the T2S Team member Katrin Sagar is scheduled for the 1st quarter of 2011. EENUG members agreed to meet within the framework of the brainstorming session to be held by the ECSD in February in order to clarify the positions and co-ordinate matters beforehand.