Europe CSDs adopt cloud, AI and press for T2S reform

Representatives of Euroclear, Clearstream, Euronext Securities and SIX told a 2026 roundtable they are upgrading technology, consolidating platforms and preparing to support tokenized assets and AI-driven services. The companies said they are investing in cloud infrastructure, distributed ledger technology, application programming interfaces and consolidated client interfaces as they ready systems for new market models.

Euronext confirmed that market participants trading on its exchanges will be able to settle with Euronext Securities, Euroclear, Clearstream or SIX when it becomes the designated central securities depository for Amsterdam, Brussels and Paris from September 2026. Pierre Davoust, Euronext’s head of securities, said allowing four settlement options will increase choice for clients and has already produced lower prices for issuers and participants.

Executives described a concentrated post-trade market. Euroclear’s chief business officer, Sebastian Danloy, reported that Euroclear holds more than half of EU-issued assets and that, combined with Clearstream, the two groups account for roughly 85% of those volumes. Danloy noted clients want a single, consistent interface even where backend systems differ across providers.

Technology changes are driving platform work. Clearstream’s chief executive, Sam Riley, said market infrastructure is attracting new attention and reported that moving parts of its platform to the cloud almost doubled settlement throughput. Euroclear has deployed a consolidated reporting tool called EasyFocus+ and both Euroclear and Clearstream are developing next-generation digital platforms, D-FMI and D7, to support tokenized instruments.

Participants emphasized that new tools must address business needs. Euroclear signaled a selective approach to digital assets, applying them where they add measurable value. SIX highlighted the need to merge conventional securities and tokenized instruments under a single access point for clients. Riley added that central securities depositories will often remain registrars and record-keepers when assets are tokenized and therefore continue to provide books and records for original issues.

The group urged the European Central Bank to improve TARGET2-Securities connectivity and pricing. Participants referenced several recent T2S service issues, including an outage in February 2025, and called for faster change management, stronger resilience and consideration of tiered pricing for asset classes such as ETFs to support the EU’s Savings and Investment Union objectives.

Fees and transparency were a focus. A 2025 industry study comparing European CSD and ICSD charges with North American levels showed wide disparities. CSD executives accepted the need to simplify pricing and remove ancillary charges, and they said many comparisons in the report were not like-for-like because international CSDs serve many markets and local market structures differ. Roundtable participants estimated that 20%–30% of current charge lines are ancillary and suggested 20%–25% of fees could be reduced by removing legacy “hygiene” items.

Regulatory and market-structure changes, including a push to shorten settlement cycles and Euronext’s expansion through acquisitions, are reshaping competition. Executives said consolidation of technology and improved interoperability, rather than single ownership, will affect whether clients obtain consistent cross-border settlement experiences. Large projects under way include cooperation between Euroclear and Clearstream to digitize the roughly €15.3 trillion Eurobond market.

Leaders at the four CSDs said they expect AI and cloud to raise productivity, enable new services and reduce costs over time, while some operators will prioritize resilience and sovereign control over critical systems. The participants framed these efforts as preparations for multiple settlement models and for increasing direct competition in European post-trade services.