The third wave of Target2-Securities (T2S) implementation will be the tipping point that decides whether the project justifies the investment that has been made in the platform, according to BNY Mellon’s Tom Casteleyn.
The third stage of the T2S project, which involves the critical mass of settlement volume in Europe, begins on 12 September and will offer its many stakeholders a first glimpse at its capabilities.
Casteleyn, head of product management for custody, cash and FX at BNY Mellon, said: “Extensive work and investment has gone into ensuring that the T2S project is successful and delivers the benefits first promised by the European Central Bank.”
Casteleyn added: “Initial delays to the migration of Italy’s Monte Titoli and more recent challenges faced by Euroclear’s central securities depository (CSD) have led some market participants to question whether the resource invested in T2S will be justified.”
According to Casteleyn, a successful migration of CSDs in France, Belgium and the Netherlands, and VP CSDs in Denmark and Luxembourg will give the market confidence to push ahead with T2S initiatives.
Moving forward, the fourth wave involves migrating Clearstream’s CSD in the significantly larger German market.
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