Frankfurt
16 March 2017
Reporter: Drew Nicol

Brexit poses threat to CMU success, says Clearstream


Strained political relations in the EU has put the harmonisation efforts of Europe’s financial markets, such as the European Central Bank’s Target2-Securities (T2S) settlement platform, under “severe stress”, according to Clearstream.

“In order to fully harness the potential and wider benefits of such developments, we need to clear away some serious obstacles on the path to a capital markets union in Europe,” said Marc Robert-Nicoud, CEO of Clearstream, which migrated to T2S in February.

“Further alignment will be necessary of the various European regulatory initiatives with the objectives of market integration initiatives such as T2S.”

In a note to clients, the Deutsche Börse subsidiary said: “Nationalistic tendencies as well as the looming Brexit are subjecting the capital markets union project to severe stress.”

“Against the current political backdrop, it is key for policy makers and stakeholders to focus on the execution of capital markets union objectives.”

Despite this, T2S, which is currently heading towards its final wave of implementation later this year, “works perfectly”, but it’s yet to achieve its ultimate goal.

Robert-Nicoud added: “The technical integration of the European settlement systems can only be a first step.”

“Now, the integration on market level has to follow lead. This is the only way how T2S can live up to its original promise: to make cross-border settlement easier and more efficient for market participants.”

Clearstream’s successfully migration to T2S, means the platform now has more than 80 percent of its expected volume.

The T2S project is scheduled to be completed with a final wave in September 2017.

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Ogier boosts their firm’s partnership
22 August 2017 | George Town | Reporter: Jenna Lomax
Huckle and Dryden were both previously part of the Cayman investment funds team and will take the firm’s global partnership to 54
ISDA: Transition period essential for post-Brexit derivatives trading
21 August 2017 | New York | Reporter: Stephanie Palmer
The International Swaps and Derivatives Association has urged UK and EU regulators to implement transitional provisions for derivatives trading after Brexit
SimCorp sees extension of Danish mandate
21 August 2017 | Copenhagen | Reporter: Stephanie Palmer
Danish asset manager C WorldWide Asset Management Fondsmæglerselskab has extended its SimCorp Dimension licence agreement to include the Data Warehouse Manager and the SimCorp Coric client communications tool
Liquidnet expands its EMEA team
18 August 2017 | London | Reporter: Jenna Lomax
Strobel will report to Bob Garrett, who is head of technology and based in the New York office
TPAs and managers looking to outsource fintech
18 August 2017 | London | Reporter: Jenna Lomax
Global third-party administrators and asset managers are looking to outsource financial technology at an increasing rate, according to Domenic Ionadi, strategic account manager at Confluence
Boeing and JCP name Northern Trust as global custodian
17 August 2017 | Chicago | Reporter: Jenna Lomax
The Boeing Company has mandated Northern Trust to act as global custodian for its €54 billion defined contribution retirement plan
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Jenna Lomax
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
More news