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New asset servicing model for T2S
10 March 2014
Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA combine to develop model
BNP Paribas Securities Services
Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo
and BBVA have developed a new asset servicing model for
Target2-Securities. Clearstream will connect via its central
securities depository to the T2S platform, hence attracting
settlement flows, while the custodian bank partners will handle
asset servicing at a domestic market level.
Target markets are Belgium, France and the Netherlands with BNP
Paribas Securities Services, Italy with Intesa Sanpaolo and
Spain with BBVA. Development work is in progress with the aim
for T2S readiness once Clearstream has joined T2S in September
Berthold Kracke, head of business management and member of the
executive board of Clearstream, said that T2S is a game-changer
for the post-trade industry, far beyond settlement in central
bank money that T2S targets. "It is our role as market
infrastructure to think through the impact of such developments
and the advantages it can bring to our clients."
Alain Pochet, head of clearing and custody at BNP Paribas
Securities Services, commented: "The new model for T2S will
offer clients all the settlement benefits of the T2S platform,
in addition to asset servicing, which goes beyond the
scope of T2S, and will be supported through our strong local
expertise in France, Belgium and the Netherlands."
Mario Domenico Recchia, head of local custody, global banking
and transaction, Intesa Sanpaolo, said: "We have been working
with Clearstream for some time now to leverage our local
expertise and scale to put in place tailored innovative
solutions to ensure that their platforms will take full
advantage of the simplification and efficiencies that T2S
promises as far as Italian domestic securities are concerned.
This is natural progression in the strong commitment we have to
our key clients and this sector in general."
Enrique Jiménez-Herrera, head of global transaction
banking at BBVA, added: "This innovative partnering concept is
key for taking advantage of T2S and complementing it with the
best solution for asset servicing. The expertise of local
agents is increasingly under demand, being the local touch that
is a must-have for markets such as Spain."
He adds that the focus on value added services such as
corporate action and tax reclaim services will be the name of
the game in the T2S environment. "In a nutshell, Clearstream
customers will have the advantages of being clients of an ICSD
and CSD together with the excellent asset servicing provided by
a local agent."
The market approach via local partners will increase the
efficiency and smooth functioning of asset services in the
future T2S environment. Customer benefits include improved
notification timelines and corporate action deadlines,
increased quality via services tailored to the local market and
reduced operational risk by leveraging the local
partner’s proximity to the market.
Citi and Erste Group Bank have also confirmed to develop a T2S
asset servicing model for Greece and Austria respectively. The
model is open to further local bank partners.