Being a part of the first wave of T2S is “crucially important”, according to Avi Ghosh, head of marketing and communications at SIX Security Services.
In a blog for Post Trade Views, Ghosh said that, while it is good that the industry is preparing itself for the initiative, CSD clients would be best advised to use a first-wave CSD.
The CSDs that launch T2S in the first wave will have more time to ‘road-test’ the initiative, and will always have more experience with T2S that the second and third-wave CSDs. According to Ghosh, this means that they will also be able to more competently develop additional services on the platform.
He added that, as well as focusing on connectivity, firms should be looking to take advantage of the other business and technology opportunities that T2S presents.
He wrote: “Although T2S should bring down costs long-term, it is not just about cost savings. Rather T2S presents the possibility to help your business achieve what it wants to achieve, particularly in areas such as collateral management and asset servicing.”
On top of this, Ghosh suggested that being in the first wave will be beneficial because many global custodians and international banks will opt to connect only two or three CSDs, and the natural choice will be those first-wave options that are most prepared.
