HSBC will adopt the SWIFT Value Added Network (VAN) solution for connecting to Target2-Securities (T2S), and for securely exchanging business information on the platform.
The VAN solution allows T2S participants to exchange information using ISO 20022 messaging, and intends to provide a resilient solution with minimal cost and risk.
HSBC will be able to implement a single window for ISO 20022 messaging, meaning the bank will be able to re-use the platform for other messaging purposes, such as fund distribution.
The bank already uses the SWIFT MyStandards Readiness Portal for T2S, which supports the implementation and integration process, and which allows users to test messages against certain specifications.
This means HSBC will be able to prove its ability to provide a certain quality of service and straight-though processing rates, generally improving the speed and accuracy of T2S message processing.
Gerd Goetz, managing director of HSBC’s transaction services in Germany, said: “Having utilised SWIFT services for years, we are confident that SWIFT is the right T2S connectivity solution for HSBC. SWIFT’s T2S solution gives us the best benefit in terms of resilience, price and low risk.”
“Through SWIFT, we can seamlessly integrate the platform with HSBC's systems, allowing for a streamlined and low-risk project. The value added services helped HSBC to focus on developing the best possible services for our customers, enabling them to capitalise on the opportunities T2S brings to the market.”
Christian Kothe, head of Central and Eastern Europe at SWIFT, said: “We are delighted that HSBC has decided to choose SWIFT to connect to T2S. We thank HSBC for its confidence that SWIFT’s is the most reliable, cost effective and strategic solution for T2S connectivity.”
“SWIFT's T2S connectivity solution is operating as expected and will accommodate additional volumes as more and more markets and participants migrate onto the platform."
This news comes shortly after HSBC confirmed, after a review, that its headquarters will remain in the UK. According to the bank, while Asia remains as its strategic focus, the decision was also based on London’s importance as an international financial centre, and on its links to developing markets.
The board also decided that reviewing the location of the bank’s headquarters location once every three years is unnecessary, and will only address the matter again if circumstances change significantly.
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