Paris
15 November 2016
Reporter: Drew Nicol

T2S user trio launch network platform


Target2-Securities (T2S) participants will soon be able to utilise a ‘single point of access model’ with enhanced collateral pooling and post-trade services, through a new collaborative network model set to launch in 2017.

The new platform is the result of a partnership between Clearstream, Citi and UBS and is aimed at allowing banks and broker-dealers to “reap the maximum benefit from T2S”, according to a Clearstream statement on the launch.

T2S, the pan-European settlement platform, is operated by the eurozone's monetary authority, Eurosystem, and is currently heading toward the fourth phase of its implementation plan, which focuses on the large German market.

Clearstream will act as the central securities depository and cater for securities financing solutions and safekeeping, while Citi will provide clearing, settlement, and asset servicing.

UBS will spearhead the project by being the first bank to offer the system and, in turn, will benefit from its partners' economies of scale and scope, as well as cross-market netting opportunities.

“This model brings together the best that each institution has to offer, giving UBS a truly best-in-class service solution, whilst delivering meaningful commercial benefits,” said Philip Brown, co-CEO of Clearstream Banking Luxembourg.

Colin Parry, head of securities, collateral and derivatives at UBS, added: "The launch of this solution comes after many years of collaboration and planning with our two partners Clearstream and Citi, around how best to position ourselves for T2S.”

“We expect network and operational simplification benefits, and also improved management of liquidity and collateral. We believe that the model sets a new industry standard, will enhance our client value proposition and will unlock numerous front-to-back efficiency gains that allow us to play a part in hitting UBS's existing cost commitments."

More clearing and settlement 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
LCH launches new SwapClear client account
15 August 2017 | London | Reporter: Drew Nicol
Global clearinghouse LCH has introduced a new type of client account within its SwapClear service that allows buy-side clients to deliver collateral directly and retain beneficial title
SWIFT to provide gateway for US real-time payments
15 August 2017 | New York | Reporter: Jenna Lomax
US banks will have the opportunity to use a single platform, Alliance Messaging Hub (AMH), for making real-time payments through TCH
LCH and Euronext secures 10-year deal on MiFID II derivatives
09 August 2017 | Paris | Reporter: Jenna Lomax
The deal allows for clearing services for listed financial and commodity derivatives for the next 10 years
Eurex Clearing calls default drill a success
03 August 2017 | London | Reporter: Jenna Lomax
Eurex Clearing successfully simulated the failure of a major clearing participant in a global fire drill in April, the clearinghouse has revealed
FDIC tells firms to prepare for T+2
31 July 2017 | Washington DC | Reporter: Mark Dugdale
US financial services firms should take appropriate steps to ensure they are prepared for the move to T+2 settlement on 5 September
Deutsche Börse engages T7 for cash
04 July 2017 | Frankfurt | Reporter: Drew Nicol
Deutsche Börse shifts cash trading onto T7 and Eurex introduces new derivative hedging tools for the buy side
New settlement netting service launches for OTC FX
03 July 2017 | London | Reporter: Stephanie Palmer
NEX Optimisation has launched its automated settlement netting service, which it calls the first of its kind in the industry
More clearing and settlement news