27 May 2010, 13:00-14:30
Eesti Pank, Tallinn

Minutes of the Meeting

Chairman of the meeting: Jaak Tõrs
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 (in chronological order)
3. Other activities between the CSD contact group and CSDs
4. Overview of the T2S Advisory Group meeting in March and preparation for the T2S Advisory Group meeting in June
5. Annual plan and other topics

   1. Overview of the general status of the T2S project

Kaire Torsus, representative of Eesti Pank, gave an overview of the latest developments of and the updated time schedule for the T2S project.

Main subjects

 Postponement of the deadline
Due to the massive scale of the project and the involvement of various parties, the initial time schedule of the project has failed. The documents serving to ensure the functional stability of T2S - General Functional Specifications (GFS) and User Requirement Documentation (URD 5.0) - were finally completed in the spring of 2010. The project still has quite a few loose ends. The project deadline has been postponed to September 2014.
Framework Agreement with CSDs
The signing has been postponed to April 2011.
A target of a maximum of 15-20 euro cents has been set for the settlement price. The specifics will be decided in the autumn of 2010.
T2S governance subsequent to system launch
The current situation suggests that the idea of the establishment of a new legal unit will be abandoned. The final decision will be made in the summer of 2010.


Detailed information on the project progress is available on the T2S web page at

   2. Events held and further progress (in chronological order)

Info session of March 24

No-one participated on behalf of EENUG at the info session held in March. Kaire Torsus gave a brief overview of the event on the basis of the published summary.

Main subjects

T2S technical documentation
The participants were given an overview of the main technical documents in progress, and the deadline for their completion.
Shareholder visibility
Various hindrances to T2S transparency were discussed at the meeting. The need for harmonisation and standardisation of the exchange and presentation of information was pointed out. It was noted that, so far, these questions have mostly been handled by CSDs on a national level. The sights have now been set on finding cross-border solutions.
Settling funds in T2S
The representative of BNP Paribas gave the participants an overview of the models currently used by France and Luxembourg for settling fund shares via CSD. The addition of the fund settlement function to T2S is important, but the account structure is still yet to be resolved.

Matching field (consultation and the teleconference of April 26)

Kaire Torsus gave an overview of the further progress on the matching field. A work group meeting was held in January with the purpose of discussing the efficiency of the criteria for matching field specified in the T2S user requirements. The meeting produced 11 proposals, ascertaining the areas that need further specification. A market consultation was held at the beginning of May in order to discuss these 11 proposals. The results of the consultation were further discussed by the work group at a teleconference held in April. Some participants expressed their concerns with respect to proposals 5 and 6. In general, however, the feedback was positive and supportive. The final proposals will be submitted to the T2S Advisory Group meeting in June.

Kersti Kiop, representative of the Estonian Central Register of Securities, added that the CSDs have not further discussed the subject with the T2S Team, but that inquiries have been submitted to the ECSD by other interested parties. For instance, ECSD participated in a survey on the percentage of CSDs actually meeting the data matching standards (currently 74% meet the standards).

Funds workshop of April 27

No-one participated at the meeting on behalf of EENUG. Keiu Sopp, representative of Eesti Pank, gave a brief overview on the basis of the summary of the meeting and other published documents. It was the first separate T2S meeting discussing funds. The main purpose of the meeting was to discuss the effect of the launch of T2S on the settlement of the shares of investment funds, and the potential of T2S in the improvement of the cross-border fund market. Representatives of managing companies emphasised the fundamental differences between fund shares and securities, but nonetheless supported further pursuit of the area. ECB pointed out the need to specify the particular problems, and the areas that need to be co-ordinated. To make further progress, a new meeting on the same topic was scheduled in June.

Workshop on smooth cross-CSD settlement in T2S context, held on May 4

No-one participated at the work group meeting on behalf of EENUG. Keiu Sopp gave a brief overview of the meeting on the basis of the documents published. The purpose of the meeting was to ascertain the potential hindrances to smooth cross-CSD settlement, and to propose the corresponding solutions to the Advisory Group.

The meeting found that hindrances may arise from the local legal environment, as well as technical and historical reasons. The meeting admitted that T2S and the CSDs might not be able to solve all problems. Still, the problems must be identified and ranked in the order of priority in order to actively pursue solutions.

The work group found that the best solution for pursuing the subject would be the establishment of a T2S sub-group, which would regularly report to the Advisory Group.

Corporate actions sub-group (CASG) market consultation, held on May 14

EENUG members had no additional questions or comments on the consultation.

Experts network meeting of 20 May 2010

Kaire Torsus gave an overview of the main subjects discussed.

The new governance structure is composed of 5 units. Overall, the structure is similar to the current structure, but some of the names will be changed. The objective is to reorganise the governance structure as quickly as possible, and to make sure that the subject needs no further discussion. The new structure will enter into force upon the signing of the Framework Agreement - i.e. after April 2011.
The pricing structure has already been established, but quite a few proposals have been made for simplification of the structure. The T2S Programme Board only approved some of the proposals. The structure thus remains relatively complicated. The purpose is to approve the pricing structure in the near future, and to proceed with other matters. The price list is scheduled for publication in the autumn of 2010.
Co-existence of ISO standards
Issues related with the co-existence of different standards in T2S were discussed. An impact analysis is currently being conducted, with the results to be presented at the Advisory Group meeting. One of the main concern is the translation of the messages of different standards (which party should translate the message), as well as the possible consequences (e.g. loss and distortion of information).


   3. Other activities between the CSD contact group and CSDs

Julia Segerkrantz, representative of the Estonian Central Register of Securities, gave an overview of the CSD meeting in Athens. CSDs who have signed the Memorandum of Understanding, prepared a letter for the T2S Team, draing attention to the main concerns: governance, pricing policy, migration, Framework Agreement and the time schedule. Overall, the market participants are on the opinion that there are too many loose ends, and that progress is slow. The CSDs will thus not launch any IT developments or make any T2S-related investments. The next CSD meeting will be held on June 22.

No progress has been made in the co-operation between small CSDs. The group needs a leader, but no-one has volunteered at this stage of the project. Julia Segerkrantz admitted that the ideas have not been forgotten, and the subjects still need to be addressed.

   4. Overview of the T2S Advisory Group meeting in March and preparation for the T2S Advisory Group meeting in June

The agenda of the meeting was relatively short, addressing previously discussed topics: T2S governance, pricing, connectivity and ISO standards.

The ECSD pointed out the huge volume of materials related to the project. Major CSDs have thus undertaken to process the materials, and send the collective opinion to the T2S Team.

   5. Annual plan and other topics

The upcoming events and the renewed T2S annual plan were reviewed. The next EENUG meeting is scheduled for September 3, but the representatives of Eesti Pank asked EENUG members to prepare for a possible change in the time schedule.

The representatives of Eesti Pank also informed EENUG members of yet another info session to be held in Copenhagen on June 24.