Italy’s technology infrastructure SIA, in partnership with Colt, has won the tender to connect Deutsche Bundesbank to TARGET2-Securities (T2S), the new centralised European platform for the settlement of domestic and cross-border securities transactions.
Deutsche Bundesbank, one of the world’s largest central banks, oversees the solvency, liquidity and risk management systems of around 2,300 of Germany’s credit institutions. Together with other European banks, the Bundesbank shapes monetary policy and works towards stable financial and payment systems.
The bank will participate in the first phase of migration to T2S, scheduled for June 2015. SIA and Colt expect the majority of the transactions generated by banks and central depositories (CSDs) taking part in the first ‘wave’ of migration to T2S to be carried on their network infrastructure.
“With the clock ticking on the first phase of migration to T2S, now is the time when CSDs and banks across Europe should be choosing their service providers,” said Hugh Cumberland, financial services solution manager at Colt. “We are very pleased to be working on this project with Deutsche Bundesbank, one of the biggest central banks in the world.”
Gian Bruno Mazzi, senior vice president (SVP) of SIA, added that the successful tender “provides significant confirmation of the fact that the market of network solutions and services for the European financial sector is open and competitive.”
T2S, a project promoted by the European Central Bank (ECB), will be managed by four central banks – Banca d’Italia, Deutsche Bundesbank, Banque de France and Banco de Espana – and is one of the initiatives for the creation of the single European financial market following the euro, TARGET2, the single euro payments area (SEPA) and the Payment Services Directive (PSD).
According to ECB forecasts, T2S will be capable of handling a daily average of over one million securities transactions, also contributing to a significant reduction in cross-border settlement costs.
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