Target-2 Securities Estonian National User Group (EENUG)

3 December 2009, from 14.00-15.00
Eesti Pank, Tallinn

Minutes of meeting

Chairperson: Kadri Martin
Secretary: Keiu Sopp

Agenda of the meeting

1. Events held: T2S Advisory Board meeting (9-10 September 2009), Experts Network[1]) meeting (17 November 2009), info session in Luxembourg (8 October 2009)
2. The ECSD project plan
3. T2S Advisory Group meeting of 8-9 December 2009: agenda of the meeting and discussion of the most important subjects for Estonia.
4. Other topics
5. Annual plan

   1. Events held: T2S Advisory Group meeting (9-10 September 2009), Experts Network meeting (17 November 2009), info session in Luxembourg (8 October 2009).

T2S Advisory Group meeting of 9-10 September 2009
Kersti Kiop, representative of the Estonian Central Register of Securities (ECRS) gave an overview of the T2S Advisory Group meeting held in September. The most important agenda items discussed:

  • T2S Programme Plan - as the preparation of the General Functionality Specification (GFS) has taken seven months longer than planned, the ECB acceptance testing time will be cut by three months. The opportunity for some CSDs to be involved in the testing process was proposed in order for the CSDs to get a better overview of the actual operation of the T2S platform prior to the testing period.
  • An agreement was reached with respect to the first and second eligibility criteria of CSDs; other conditions are still being discussed, with the T2S Programme Board specifying the wording of criteria 3 and 6.
  • Pricing - no discounts will be provided on transaction volumes.
  • T2S platform migration - two options have remained of the migration plans: migration by CSDs and migration by securities (based on ISIN codes). Should the migration by CSDs be chosen, a migration plan must be prepared, specifying which CSDs are included in which wave of migration.

ECSD's representative Julia Segerkrantz added that the official accession agreements should be completed and submitted to the CSDs by April, with the CSDs provided 4 months to decide.

Eesti Pank's representative Riina Mäesalu commented on the pricing that different price lists are applied for early and late joiners. In addition, a new volume forecast will be prepared, forming the basis for a new price offer.

Experts Network meeting
Riina Mäesalu gave an overview of the last meeting, where the following subjects where discussed:

  • Renewal of the mandate of the T2S Advisory Group and National User Groups. It was decided that the topic would be further discussed at the meeting in December, with additional proposals to be made for further T2S governance.
  • Two sub-groups will be established under the T2S Advisory Group: sub-group on legal issues and sub-group on technical issues.
  • A proposal is planned to be submitted to the T2S Advisory Board on accession to the T2S platform by CSDs.
  • The T2S Programme Board approved the GFS.
  • The Norwegian krone will be added to the T2S platform currencies.
  • Amendments to the main T2S documents will be made under the principle of distinction between general amendments and specific amendments, subject to different fees.

In addition, an overview was given by Riina Mäesalu at the Experts Network meeting on the response sent by the ECB to Eesti Pank, according to which Eesti Pank would be assigned a seat in the T2S Advisory Group after confirmation of Estonia's accession to the euro zone.

The representative of the central bank of Lithuania informed that, for Lithuania, the common Baltic securities settlements in euros, initiated by the Estonian Central Register of Securities, means that the settlement currency for 90% of the transactions is the euro. It would thus be unreasonable to include the Lithuanian litas as a settlement currency in the T2S platform. The Lithuanian NUG would pass a corresponding decision at the beginning of December.

T2S info session
Eesti Pank's representative Kadri Martin informed that the info session held on 8 October 2009 also discussed liquidity optimising in addition to other subjects. The info session also revealed that the transaction volumes have dropped due to the crisis, and tried to find ways to enhance the volumes.

Subsequent activities
Kersti Kiop will circulate a longer summary of the T2S Advisory Group meeting held in September, as well as summaries of the meetings of the CSD Contact Group and the Project Manager's Sub-Group for information purposes.

   2. The ECRS project plan

The representatives of the ECSD admitted that the accession project plan has seen no further development since September.

Kersti Kiop also drew attention to the fact that even though the project plans are not subject to publication, some CSDs have published the plans on their web pages.

   3. T2S Advisory Group meeting of 8-9 December 2009: agenda of the meeting and discussion of the most important subjects for Estonia

Kadri Martin listed the most important items on the agenda: governance, eligibility of the CSDs and pricing. In general, the eligibility criteria were considered reasonable. It is currently difficult to express an opinion of the criterion regarding settlement in several currencies. Should Estonia join the euro zone before launch of the T2S platform, this subject will prove less important for the Estonian market.

Andres Lips will represent the ECSD at the T2S Advisory Group meeting.

Subsequent activities
Should the ECSD have additional questions concerning the items on the agenda of the T2S Advisory Group meeting, regarding which EENUG has not received any documents or has failed to process the documents by the time of the meeting, the ECSD shall contact EENUG members in writing.

   4. Other subjects

Meeting of the Nordic-Baltic NUGs in Stockholm on 19 January 2010
Kadri Martin informed that registration would be open until 15 December 2009. EENUG members had to submit their participation application and suggestions on the items on the agenda to Keiu Sopp and Kadri Martin by 14 December 2009 at the latest. A minimum of four seats would be assigned to each country. The chairman of EENUG recommended the following division of the seats: one seat for the central bank, one for the CSD and two for credit institutions. EENUG members agreed.

Representatives of the ECSD informed EENUG members that Romania had initiated the idea of establishing an interest group for small CSDs in order to discuss the most important subjects. The ECSD supported the idea, but failed to participate at the first meeting.

   5. Activity plan for 2010

The chairperson of the Estonian NUG, Eesti Pank's representative Kadri Martin made the proposal to continue national co-operation in the field of T2S in 2010 based on the same mandate as in 2009, and to hold EENUG meetings, as a rule, a week before the T2S Advisory Group meetings. EENUG members approved the proposal.

Subsequent activities
The secretary of EENUG will prepare the annual plan for 2010 by considering the dates of the meetings of the T2S Advisory Group, and submit the plan to EENUG members for information and comments.

[1] For additional information, visit www.ecb.int/paym/t2s/progress/nugs/html/exp_mtg4.en.html