Interbolsa, which manages the Central Securities Depository (CSD), securities settlement systems and National Numbering Agency in Portugal, is to use SWIFT’s Value Added Network (VAN) solution plus integration tools to connect to the Target2-Securities (TS2) single settlement platform in Europe, which the European Central Bank (ECB) is now due to launch late in November 2016.
Interbolsa intended ‘go live’ for its T2S connection coincides with the delayed 2016 start date. According to the Portuguese CSD, it has chosen SWIFT for a number of reasons, but principally to ease the compliance burden and to ensure the smooth and easy adaptation of its IT systems and operational procedures for settlement in the T2S platform in a timely manner. It is also hoping to enhance its portfolio of services by adopting integration and reporting tools.
Commenting on the deal, Rui de Matos, a member of the managing board at Interbolsa, said: “We are confident that SWIFT is the right T2S connectivity solution … bringing unmatched benefits in terms of resilience and ease of infrastructure enhancement. We look forward to working closely with SWIFT to implement its integrated solution, which we are confident meets our specific needs.”
BNY Mellon and others are offering rival outsourcing solutions to help firms achieve T2S compliance. Earlier this year, a Celent report that was supported by SWIFT, identified ‘significant gaps’ in the financial sector’s readiness for the important T2S project, so there are many out there looking for assistance in moving towards the securities single settlement platform.
The objective of T2S is to facilitate post-trading integration by offering core, neutral, harmonised and commoditised delivery-versus-payment settlement in central bank money in substantially all securities in Europe. SWIFT’s VAN solution will enable T2S participants to connect to the T2S platform for the secure exchange of business information - using the ISO 20022 messaging format which T2S will rely on - with what the collective says will be high resilience, at the best price, and with little upfront cost.
SWIFT also claims to have created a full suite of services to support firms in their transition towards T2S, starting with planning/analysis services, and progressing through implementation, testing and migration, all the way to the launch of live operations.
“We are delighted that Interbolsa has decided to leverage SWIFT to connect to T2S, and to use our integration solution to ease the implementation of T2S into its operations,” concluded Alain Raes, chief executive for the Europe, Middle-East and Africa (EMEA) region at SWIFT.