BNP Paribas Securities Services will become a directly connected participant to the TARGET 2 Securities (T2S) settlement platform in Europe from the first wave of migration.
BNP Paribas is the largest custodian in key T2S markets, with operations covering 95 percent of total projected settlements on the platform.
The T2S system will provide a single platform for securities settlement in central bank money in Europe, harmonising the way in which securities transactions are completed with the hope of creating a smoother and more robust financial system in Europe.
The T2S platform will be rolled out across Europe in ‘waves’, the first of which is due in June 2015 and will cover settlements in Italy, Switzerland, Greece, Romania and Malta.
Alain Pochet, head of clearing and custody services for BNP Paribas Securities Services, said: “We are preparing for all kinds of client requirements in the run-up to the T2S implementation to provide our clients with the flexibility they need."
"Clients can link to T2S across multiple markets via a flexible account structure and with options to settle in commercial or central bank money. Alongside this service, we will also provide standalone local asset servicing for clients and institutions such as central securities depositories, who will link directly to T2S but still need local support for processing corporate actions, income and tax.”
“T2S will harmonise a number of core settlement features, bringing efficiency and stability to our clients. But is not designed to handle all local market specificities and this is where we bring value.”
The bank plans further service enhancements for liquidity management, as well as value added services for settlement such as pre-matching management, prioritisation and standing instructions. BNP Paribas is one of a group of providers to commit to the timeline following a call from the European Central Bank to sign up for wave 1 connectivity in order for them to prejudge the eventual scale for the platform required across Europe and begin testing.
