- The network infrastructure of the two network service providers will allow Germany’s central bank to access the centralised European settlement platform for domestic and cross-border securities transactions
- The majority of the transactions generated by banks and central depositories participating in the first phase of migration to T2S, scheduled for June 2015, will be carried on SIA and Colt’s highly reliable and secure network
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 is one of the world’s largest central banks and is responsible for the continuous oversight of the solvency, liquidity and risk management systems of the approximately 2,300 credit institutions in Germany. Together with other European banks, the Bundesbank shapes monetary policy and works towards stable financial and payment systems.
Deutsche Bundesbank will be taking part in the first phase of migration to TARGET2-Securities, 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. We are very pleased to be working on this project with Deutsche Bundesbank, one of the biggest central banks in the world,” said Hugh Cumberland, Financial Services Solution Manager at Colt.
“This prestigious success in the tender for Deutsche Bundesbank demonstrates that SIA and Colt have technological qualities of absolute excellence in terms of the reliability, solidity and security of their infrastructures at international level. At the same time, it provides significant confirmation of the fact that the market of network solutions and services for the European financial sector is open and competitive” commented Gian Bruno Mazzi, Senior Vice President of SIA.
TARGET2-Securities, a project promoted by the ECB which will be managed by four central banks (Banca d’Italia, Deutsche Bundesbank, Banque de France and Banco de Espana), is one of the initiatives for the creation of the single European financial market following the Euro, TARGET2, SEPA (Single Euro Payments Area) and PSD (Payment Services Directive). According to forecasts from the European Central Bank, TARGET2-Securities will be capable of handling a daily average of over 1 million securities transactions, also contributing to a significant reduction in cross-border settlement costs.