Volante Technologies is adding to its range of Accelerator products by unveiling a TARGET2 Securities (T2S) Accelerator, which will help firms adopt the T2S ISO 20022-compliant XML messaging that all participants on the single securities settlement engine in Europe will have to move to by the 2015 migration start date.
The move into the post-trade securities space follows earlier Accelerator launches by Volante in the single euro payments area (SEPA) and for SWIFT payments; both of which also rely on XML ISO20022 messaging. The products are aimed at corporate trading/hedging end users and all banks and other finance professions that increasingly rely on the XML standard and can convert formats and speed up the compliance process if so required.
According to the vendor the latest T2S Accelerator is designed to support rapid integration to the T2S settlement platform being rolled out under the auspices of the European Central Bank (ECB). The new launch offers full T2S message library data, including validation services and where relevant, off-the-shelf transformations from existing ISO 15022 MT5xx series messages into the equivalent T2S messages, is possible.
T2S Single Securities Settlement Engine starts in Europe 2015
Migration to T2S begins in July 2015 and the project is designed to improve post-trade efficiencies in Europe. By removing barriers across countries the new shared T2S European securities settlement engine is hoping to cut overall industry costs and give regulators greater oversight over trade flows, collateral and so forth.
At present most securities settlement uses ISO 15022 messaging, which in response to the regulation, will change to ISO 20022 compliant XML, with the Accelerator product offering an easy route to T2S compliance. In addition to bi-directional mappings, the T2S Accelerator from Volante provides definitions and cross-field validations for all other non-equivalent messages, as defined by the User-Detailed Functional Spec (UDFS) produced by the ECB.
The T2S Accelerator enables corporates and financiers to map their own propriety data, which may be specific to that firm’s internal message and data standards, by offering a number of generic adaptors such as XML, CSV, Fixed-Width and a COBOL copybook. The Accelerator also supports all T2S connection models such as Push, Pull, Message or File.
Firms could benefit from the flexibility to either automatically convert new messages or adapt messages in-house to the required XML format. The Accelerator covers all the key T2S participants, such as European central securities depositories (CSD), institutional banks, custodians and securities services companies. An in-built browser-based .html capability can define dashboards for exception management and screens that simplify manual input for lower volume organisations can also be specified, providing a platform to process ad hoc requests.
In addition, Volante says its technology is system agnostic, giving firms the agility to connect to T2S via SWIFT’s VAN, SIA/Colt or via Direct CoreNet-based connectivity.
Commenting on the launch, Fiona Hamilton, vice president of operations for Volante in the Europe, Middle-East and Africa (EMEA) region, said that she expects T2S will help create efficiencies in post-trade securities, resulting in lower overall settlement costs. “However, participating firms face the challenge of migrating from the current ISO 15022 standards to the more comprehensive list of detailed T2S ISO 20022 compliant standards,” she added. “By implementing Volante’s T2S Accelerator, part of a series of out-of-the-box accelerators, organisations can adopt new standards quickly and efficiently without changing their infrastructure. This ultimately helps by reducing project times and lowering total cost of ownership (TCO).”
Data from Swift’s latest RMB tracker shows exceptional growth in RMB adoption in the United Arab Emirates (UAE), witnessing a 210.8% growth in payments value of the currency since August 2014, albeit from a low base.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.