Post-trade services provider SIX Securities Services today releases data from a survey conducted at the SIBOS conference at Dubai, UAE. The survey acts as a barometer to current attitudes to Target2-Securities (T2S) amongst major European financial institutions.
On T2S and the cost of settlement
On T2S and CSD consolidation
On preparations for T2S
On T2S and collateral management
Thomas Zeeb, CEO, SIX Securities Services, commented: “The industry continues to be concerned that T2S will increase the costs of settlement services in Europe which is against one of the main aims of the project. Rather than insisting on a new settlement engine, it might have made more sense to tweak existing systems. As all CSDs will have to overhaul their systems, many will choose to pass costs on to their customers.
“However, T2S will provide some tangible benefits, most notably in helping firms improve collateral management processes. With high-quality collateral becoming ever more scarce, this can only be a good thing. T2S also presents an opportunity for the providers of settlement services. Consolidation will inevitably occur as with a single standardised settlement engine, there will be little need for financial institutions to split their business across multiple providers.”
The survey coincides with the launch of a new study on collateral management by SIX Securities Services. ‘Collateral Management – Can Collateral Values Prevent The Next Crisis’ is based on the views of senior figures responsible for collateral management at 60 leading financial institutions in the UK, France and Germany.