European market infrastructure faces integration hurdles

financial market infrastructure securities settlement TARGET2-Securities European market integration cross-border settlement

European financial market infrastructure continues to face challenges regarding deep integration despite heavy investment in shared platforms. While TARGET2-Securities (T2S) processed a record 235.2 million transactions worth €280.9 trillion in 2025, settlement efficiency remained high at 93.5% by volume and 98.0% by value.

However, direct cross-Central Securities Depository (CSD) activity remains limited. Data indicates that technical connectivity does not equate to actual cross-infrastructure usage. Barriers to deeper integration persist due to national legal frameworks, tax arrangements, and varying market practices that shape how securities are issued and traded.

The European Commission is addressing these issues through a market-integration package designed to simplify cross-border CSD processes and improve connections between EU settlement systems, moving beyond mere technical connectivity to address underlying procedural differences.

Entities

European Central Bank · European Commission · TARGET2-Securities

Sources

Financial Market Infrastructures Support European Markets [www.worldfinanceinforms.com]

2 months ago

Enterprise infrastructure has never had more options. That is part of the problem. [bridgepointetechnologies.com]

2 months ago