Programme plan

Preparation

Preparation phase (July 2006 - July 2008)

In July 2006, the ECB Governing Council decides to further explore, in cooperation with CSDs and other market participants, the possibility to set-up a new pan-European service for securities settlement in the euro area more. Later in 2006, a feasibility study of the T2s initiative was carried out by the ECB Governing Council more.

The preparation phase elaborated in close collaboration with all stakeholders the user requirements of the TARGET2-Securities platform. The requirements were completed at the end of 2007. At the beginning of 2008, a public consultation gave all stakeholders the opportunity to provide their feedback once more. Thereafter, the final version of the user requirements was submitted to the ECB decision-making bodies for approval.

A formal proposal was made by the ECB Governing Council to all European CSDs to join the T2S initiative in May 2008. At the same time, a T2S Economic Impact Assessment was published by the ECB in cooperation with CSDs, as a result of the public consultations held in 2007 more.

Specification phase (July 2008 - Sept 2012)

The specification phase started in July 2008 and is due to finish in Sept 2012 with the publication of the User Defined Functional Specifications (UDFS) V1.2.1. This phase is devoted to drafting the technical documentation that will be used for programming the T2S software. The most important documents produced in this phase were the:

• User Requirements Document (URD) V5.0 [7.84 MB] : The document describes the features of T2S as required by the CSDs and market participants. The URD embodies the user’s concept of T2S and provides the foundations for all further T2S technical documentation.
• General Technical Design (GTD) V2.0 [1.66 MB] : The document details the solution envisaged for the T2S non-functional requirements, more specifically with regard to the application design and the infrastructure design.
• General Functional Specifications (GFS) V4.0 : The document explains how the requirements expressed in the URD will be fulfilled by the T2S platform from a functional perspective
• General Specifications (GS) V1.0 : Together with the GFS and the GTD, the document describes how the Eurosystem envisages implementing the URD. In particular, the General Specifications focus on those user requirements that do not have a functional or technical dimension, such as operational support, testing, migration and information security.

Further key milestones achieved during this phase were the appointment of the T2S Programme Board to manage the project on behalf of the Eurosystem and the signing of a Memorandum of Understanding (MoU) with 27 CSDs interested in joining T2S.

Development Phase (April 2009 - March 2014)

The development phase started in April 2009 and is scheduled to finish in March 2014. During this phase, the software for the T2S platform will be developed and tested by the 4CB.

On the client side, CSDs and NCBs will undertake a feasibility assessment to ensure that adapting their systems to the T2S platform is feasible.

In addition, during the Development Phase the Eurosystem will subscribe the contractual agreements with the participating CSDs (so-called Framework Agreement) and the non-euro area NCBs that will use T2S for settlement in their local currencies (so-called Currency Participation Agreement).

Finally, a tender took place in this phase whereby two providers of Value-Added Network (VAN) services in T2S were selected: SWIFT and SIA/COLT. In addition to VANs, connectivity to T2S via Dedicated Link will also be possible and the Governing Council approved the use of the Eurosystem’s CoreNet service as the connectivity solution for the Dedicated Link.

This project phase elaborated in close collaboration with all stakeholders the user requirements of the TARGET2-Securities platform. The requirements were completed at the end of 2007. At the beginning of 2008 a public consultation gave all stakeholders the opportunity to provide their feedback once more. Thereafter, the final version of the user requirements was submitted to the ECB decision-making bodies for approval.

SP1 – Start Feasibility Assessment Confirmed	Each CSD and CB is required to undertake a detailed assessment to ensure that it is feasible to adapt their IT systems and processes to the T2S Platform. SP1 marks the confirmation that the Eurosystem has provided the required set of specifications and documents to the CSDs and CBs to enable them to undertake a detailed feasibility assessment for the adaptation of their IT system and processes to T2S.
SP2 – Confirmation of Feasibility	SP2 marks the confirmation by CSDs and CBs that they have reviewed the specifications and documents delivered for SP1 and confirm that it is feasible to adapt their IT systems and processes to interoperate with T2S. As part of their feasibility assessment, CSDs and CBs have identified their approach to the adaptation of their IT systems as well as impacts on processes and potential changes to their service offering.
SP3 – T2S Programme Plan Comprehensiveness	SP3 marks the mutual assessment and confirmation that the T2S Programme Plan is fully comprehensive and adequately reflects all specifications and planning elements. This SP represents the achievement of a mutual baseline plan for T2S, given all information available at that time.
SP4 – Network Providers Confirmed	SP4 marks confirmation that the network service providers have been selected for T2S. The Eurosystem and the selected Network Service Providers (NSP) undertake proof of concept and Network Acceptance Tests to demonstrate that the NSPs fulfil the technical requirements as required in the tender in order to provide certainty to CSDs and CBs of the NSP’s capability to support T2S connectivity.

Eurosystem Acceptance Test (March 2014 - Sept 2014)

The T2S platform is scheduled to be received by the Eurosystem in March 2014, after which point internal Eurosystem Acceptance Testing will commence. In this phase, the Eurosystem will conduct formal testing activities to determine whether the T2S Platform is compliant with the T2S Scope Defining Set of Documents.

SP5 – Start of Eurosystem Acceptance Test

Eurosystem Acceptance Testing refers to the formal tests carried out by the Eurosystem to ensure that the T2S Platform is of the required quality and is compliant with the legal documentation outlining the scope for the T2S Platform. SP5 marks the confirmation that the Eurosystem has provided all relevant EAT documentation (e.g. test cases, test calendars, etc.) to the CSDs/CBs and confirms that it is ready to start the acceptance testing.

SP6 – Eurosystem Ready for User Testing

SP6 marks the Eurosystem confirmation that the CSDs and CBs can start User Testing. The Eurosystem confirms that it has set-up the T2S User Testing environment(s), implemented all supporting processes, trained the support teams and provided the required documentation.

User Testing Phase (May 2014 - January 2017)

May 2014 marks the beginning of the User Testing Phase. The first step is SP7 – Start Connectivity Set-up. This Synchronisation Point is broken into two distinct parts, to reflect the two possible connection types to T2S: Dedicated Link and Value Added Network.

SP7.DL marks the Start of Connectivity Set-up for Dedicated Link, and SP7.VAN marks the Start of Connectivity Set-up for Value-Added Network. Connectivity Testing will follow once set-up has been completed, starting at the latest in August 2014.

In Q3 2014, the specific user testing phases will begin – involving those CSDs, national central banks and banks which intend to be directly connected to T2S. The different phases of testing activities are outlined below. The purpose of the different phases is to gradually increase the number of T2S actors involved and expand the scope of testing.

The objective of the user testing phase as a whole is to ensure that the T2S platform fully meets the user requirements. In addition, the successful completion of the user testing will enable CSDs, central banks, directly connected T2S parties and (other) holders of T2S dedicated cash accounts to migrate to and operate in T2S.

(Please Note: SP9 - 12 are carried out by "wave", which simply means a pre-defined group of CSDs. The dates and allocation of CSDs to each wave have been defined in Q1 2013, as a pre-requisite for the completion of SP3, T2S Programme Plan comprehensiveness. Up to four waves are foreseen, plus a contingency wave.)

SP7.DL & SP7.VAN – Start Connectivity Set-up	SP7.DL and SP7.VAN mark the start of the connectivity set-up and testing by all participating CSDs and CBs to the T2S User Testing environment(s). During this phase each CSD ensures that it can technically connect to the T2S platform.
SP8 – Start Bilateral Interoperability Testing	SP8 marks the start of the Bilateral Interoperability phase. During this phase each CSD tests that it can interoperate with T2S and verifies that all T2S services (e.g. settlement processes) are operating as required. Note the tests in this stage are carried out in isolation of other CSDs and CBs.
SP9.x – Start Multilateral Interoperability Testing	SP9.x marks the start of the Multilateral Interoperability Phase. During this phase each CSD tests settlement processes with the other participating CSDs and CBs within its migration wave.
SP10.x – Start Community Testing	SP10.x marks the start of the Community Testing Phase. In this phase, each CSD extends its testing activities with other CSDs and CBs to include its users with which it has a contractual relationship. The objective of this stage is to verify that CSD participants can interact correctly with T2S.
SP11.x - Start Business Day Testing	SP11.x marks the start of the Business Day Testing Phase. The phase comprises the simulation of several consecutive business days of operation. It includes all CSDs of a migration wave, as well as their CBs and Community users. The objective of this phase is to test the T2S platform under production-like conditions.
SP12.x – End of User Testing

Migration Phase (June 2015 - February 2017)

Migration to T2S will take place in waves (including a contingency wave: foreseen by May 2017) beginning with the first wave in June 2015. The allocation of CSDs for each wave is available under the tab “Migration Weekends”.

The objective of the migration phase is to enable a smooth and successful transition to the usage of the T2S services for the CSDs, CBs and their communities. Several steps are required in preparation of the migration weekend, including readiness of the production environment and the upload of common static data.

The different stages of the migration phase are outlined below.

SP14.x – Ready to Connect to Production	SP14.x marks the confirmation by CSDs and CBs that they can technically connect to the T2S production environment. A connectivity guide has been provided to CSDs and CBs by the Eurosystem and there is a technical helpdesk in place for support during production.
SP15.x – Ready to Upload Static Data	SP15.x marks the start of the upload of the Static Data to T2S. This refers to business information that is common to all T2S users. E.g. the SWIFT BIC Directory.
SP16.x – Ready for T2S Go Live	SP16.x marks the last checkpoint before migration. All common static data has been uploaded. The organisation and timeline of the migration weekend have been defined, staff have been trained, and supporting documentation has been delivered to the CSDs and CBs.
Start T2S Operations

The T2S Go-Live date refers to the date at which the first group of CSDs start operations on the T2S platform. The migration phase will continue after this date, while the remaining groups of CSDs and other market participants migrate to T2S.

Migration weekends

Migration weekends

The migration will take place over several weekends. On the Monday morning following these Migration Weekends the CSDs will be operationally settling in T2S.

The table below shows the start of each wave and the allocation of CSDs per wave.

On 17 May BNY Mellon CSD signed the T2S Framework Agreement. They will be allocated to a migration wave in the coming months.