At the end of September, BNB held a webinar with market participants to provide more details on the initiated procedure to join TARGET2-Securities (T2S), the main point of which can be summarized as follows:
- In June 2022 BNB had sent a Letter of Intent to join T2S to the European Central Bank (ECB);
- BNB had also finalized the required Feasibility Assessment;
- In Q4 2022 it is expected that BNB will also sign the T2S Framework Agreement;
- After joining T2S the Government Securities Settlement System of BNB will no longer be an auxiliary system in T2;
- BNB also re-confirmed its plans for internal testing in December 2022 and testing with ESROT participants in Q2 2023.
BNB has also advised that Central Depository AD will follow the same procedure and general timeframes.
Impact on investors: Bulgarian CSDs plans to join T2S in September 2023. Full client impact is to be evaluated once sufficient details are available.