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."