The strategy is designed to offer Northern Trust’s clients an enhanced range of asset safety holding structures, liquidity assurance and liquidity products to meet individual requirements.
Under the terms of the appointments, Northern Trust will establish direct market connectivity in a number of key European markets through Euroclear’s Investor Central Securities Depository solution (CSD) and Deutsche Bank will service the assets held in Northern Trust’s accounts directly at Euroclear’s Investor CSD.
Wilson Leech, head of Northern Trust in Europe, Middle East and Africa, said: "T2S is a significant step forward in fostering greater efficiency and integration of Europe's financial markets and reducing counterparty and settlement agent risk."
"By appointing Deutsche Bank and Euroclear, Northern Trust is well positioned to support new centralised delivery-versus-payment settlement in central bank funds across European securities markets, on behalf of our clients."
Satvinder Singh, head of institutional cash & securities services at Deutsche Bank, said: "As the European securities settlement landscape continues to evolve, we are very pleased to have been selected by Northern Trust to provide an innovative solution that will enable them and their clients to capitalize on the new single market infrastructure."
"This mandate reinforces our commitment to the success of T2S and our leadership position in Europe."
Tim Howell, CEO at Euroclear, added: "We are delighted that Northern Trust has appointed Euroclear as their central securities depository of choice to provide safe, efficient post-trade services with direct access to a number of key European securities markets."
"Euroclear's Investor CSD solution will ensure Northern Trust's clients benefit from enhanced transparency, access to liquidity and asset protection."