Clearstream and BNP Paribas have finalised their partnership to provide settlement services under TARGET2-Securities (T2S).
The pair first announced plans to develop an asset servicing model for T2S eight months ago, and have now completed a functional analysis of their plans and signed a partnership agreement.
The solution will combine Clearstream’s global settlement efficiency with BNP Paribas’s domestic market expertise to prepare for the implementation of T2S next year, and to present a tangible asset servicing model for the market environment under T2S.
Berthold Kracke, head of business management and member of the executive board, said: "We are delighted to confirm our partnership with BNP Paribas Securities Services for an asset servicing model that will combine Clearstream’s global settlement expertise with local market know-how.”
“Once T2S has gone live, our customers will benefit from a one-stop shop solution
that goes beyond settlement services. Banks decide on their T2S partners now – our proposal is on the table."
Clearstream will connect to T2S platform via the German central securities depository, in a bid to attract settlement flows. Custodian bank partners will then handle asset servicing on a domestic market level, utilising domestic market expertise.
BNP Paribas Securities Services will be responsible for asset servicing in the Belgian, French and Dutch markets, and Clearstream will progress with other agent bank partners to further expand market coverage.
Alain Pochet, head of clearing and custody at BNP Paribas Securities Services, said: "Thanks to our T2S service model, Clearstream will enjoy our specialist asset servicing expertise at the local market level.”
“Our T2S service models are ready, enabling our clients to reap the benefits of the platform ahead of deadline. These models go beyond the functional scope of T2S to include features such as liquidity and collateral management and can be customised to best suit our clients’ needs."
