The City of London Telecommunications (Colt) firm as it is historically known and the SIA payments processor is building out a new network infrastructure for the existing Target2 euro real-time settlement platform and the planned Target2-Securities (T2S) project in Europe . Operating alongside SWIFT and various other stakeholders and players, this latest offering connecting the Target2 German, Italian, French and Spanish central banks via its 4-CentralBank-Network (4CBNet) will subsequently be available for the settlement of T2S domestic and cross-border securities transactions.
The 4-CentralBank-Network (4CBNet) is being introduced now and will be fully rolled out by Q3 2013 well ahead of the launch of the T2S single securities settlement platform a couple of years from now. It will provide a 10 Gigabits (10Gbs) high-speed network connectivity backbone for the four key central banks operating the Target 2 system and the T2S project under the auspices of the European Central Bank (ECB).
Colt and SIA assert they will deliver an "intelligent network infrastructure" that can monitor and manage the large amounts of data traffic expected in a fully automated way and provide resiliency and business continuity by synchronising the four central banks' data centres.
Two seven-year T2S connectivity licenses were awarded last year to design and build the enhanced Target2 network in anticipation of T2S with the Colt/SIA partnership winning out alongside a separate SWIFT network, which will both link the central securities depositories (CSDs) with the ECB. Rival clearers and major European players such as Euroclear and ClearStream will have to connect to the new scheme, however reluctantly to ensure the desired harmonisation of securities clearing in Europe, but will of course be offering their own value-added services and different options to retain the majority volume flow that they currently enjoy.