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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

Read more: Target2-Securities Clearstream BNP Paribas Securities Services Intesa Sanpaolo BBVA

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 2016.

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.


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