Warsaw
29 June 2017
Reporter: Stephanie Palmer

Harmonisation will mean success for T2S


More harmonisation and standardisation is required for the market to fully realise the intended benefits of the Target2-Securities (T2S) pan-European settlement platform, according to speakers at The Network Forum.

In a live poll, conference attendees were asked which of the planned benefits of T2S have been best achieved.

Some 37 percent of the audience named liquidity and collateral efficiencies, while process harmonisation and changing business models were considered benefits by 32 and 30 percent, respectively.

However, only 1 percent of respondents said they see benefit in direct transactional cost savings.

Allison Levy, director of asset servicing global product management for Europe, the Middle East and Africa at BNY Mellon, said that some of the benefits of the platform are “not so easily measured”.

She noted that, while cost savings may not have come about yet, T2S is likely to improve the back office and therefore lead to additional benefits.

The audience was also asked what could further materialise the benefits of T2S. Asset servicing harmonisation emerged as the most popular answer, named by 53 percent, followed by increased volume of cross-CSD settlement, selected by 36 percent.

Karen Birkel, chair of the change review group at the European Central Bank, suggested that in terms of asset servicing, corporate actions would be the most difficult thing to harmonise, saying: “There’s still a lot of work to be done there.”

Levy added that, while harmonisation would be “so welcome”, the markets each work so differently, so it “will be really tough to bring all of that together”.

However, another speaker, Swen Werner of State Street, suggested that one of the real benefits of the platform is that is has created a process of governance which “over time will bring some of the standardisation.”

Birkel added that CSDs have already “collaborated fantastically” to make T2S migrations work in the first place. The whole project is about collaboration, and about prioritising and solving problems in a collaborative way, she said.

More Industry 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
AcadiaSoft expands user base for IM compliance
21 September 2017 | Massachusetts | Reporter: Drew Nicol
The second phase of the IM rules went live on 1 September under the regulatory framework of BCBS and IOSCO
UCITS funds enjoy assets boom in Q2
18 September 2017 | Brussels | Reporter: Jenna Lomax
The latest growth figures represent the highest level of net sales recorded since Q1 2015
Gestar acquires ESG solution provider ISS
08 September 2017 | New York | Reporter: Stephanie Palmer
Genstar Capital is to acquire Institutional Shareholder Services (ISS), a provider of corporate governance and responsible investment solutions, from Vestar Capital Partners
AxiomSL expands European presence
07 September 2017 | London | Reporter: Stephanie Palmer
AxiomSL has opened new offices in Paris, Madrid and Frankfurt, in a bid to strengthen support for clients in those respective countries
World’s pension funds return to form in 2016
05 September 2017 | London | Reporter: Drew Nicol
The world’s largest pension funds increased their assets under management by 6.1 percent in 2016, and are now worth $15.7 trillion, according Willis Towers Watson
Northern Trust appoints new head of Southeast Asia
30 August 2017 | Singapore | Reporter: Jenna Lomax
Northern Trust has chosen Yen Leng Ong as its new country head of Singapore and head of Southeast Asia
SIX reports strong results for 2017 so far
30 August 2017 | Zurich | Reporter: Stephanie Palmer
The securities services business drove strong results for SIX during the first six months of 2017, recording an operating income of CHF 189.1 million (€165.65 million)
More Industry news