ECB research uses game theory to assess optimal T2S adaptation
Research by the European Central Bank (ECB) has found an optimal formula for the degree to which central securities depositories (CSDs) should perform a costly one-off adaptation to the Target2 Securities (T2S) programme.
The working paper, Optimal CSD reshaping towards T2S, by Fabien Mercier and Stephan Sauer, applies a game theoretic approach to model the trade-off between a high cost now and being able to better harness the potential of T2S later. They derive a formula for the optimal
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