As an ancillary settlement system, the CSD Prague has become a direct participant in TARGET2 (the payment system operated by euro area central banks). As of today, therefore, the cash part of securities settlement in EUR in the CSD only takes place via TARGET2, which means that participants or their clearing banks must be cleared through this payment system if they want to allow delivery versus payment (DVP) settlement in EUR.
“This day the domestic capital market enters to the eurozone. We believe that this qualitative shift will be appreciated by issuers for issuing dematerialized bonds and other securities denominated in euro, and participants and their clients for risk-free and standard settlement of trades and hedging transactions in euro via the central bank payment system. I would also like to thank the National Bank of Slovakia for their excellent cooperation in the entire process of our entry into TARGET2, both in technical and licensing terms,” says Ondřej Dusílek, CEO of CSD Prague.