Information event for future DCA holders: Euro liquidity management. Introduction T2S: technical challenges and opportunities for liquidity

Size: px
Start display at page:

Download "Information event for future DCA holders: Euro liquidity management. Introduction T2S: technical challenges and opportunities for liquidity"

Transcription

1 DEUTSCHE BUNDESBANK Frankfurt, 16 December 2013 Jochen Metzger Head of the department Payments and settlement systems Information event for future DCA holders: Euro liquidity management in view of T2S Introduction T2S: technical challenges and opportunities for liquidity managers Introduction I am very pleased to welcome you here at the premises of the ECB and to open the information event for future DCA holders. The event has the aim to provide information on the euro liquidity management in view of T2S. The initiative for this event has come from the DCP (Directly Connected Participant) Forum. The members requested more information and clarifications on the liquidity management offered by T2S and the central banks. The Eurosystem has taken up the ball and has organized this info session in close cooperation with Marcello Topa as representative of the DCF and the CSG chair office. The focus is on euro liquidity management in central bank money in T2S. The emphasis is on functional, legal, technical and operational aspects. The session is a result of the joint effort of colleagues from the ECB, 4CB/3CB, Banque de France and the Deutsche Bundesbank and I would like to thank all the organisers and speakers for their effort. Invited have been: the members of the DCP Forum, the TARGET Working Group and the central banks of the ESCB. And I am very pleased to see quite a number of my colleagues in this room.

2 We first planned to invite also the NUGs. Owing to the limited room capacity it has not been possible to do this. However, we might offer - in case of need - a similar session at the beginning of next year to which all NUGs could be invited. Role of DCPs in T2S T2S offers enormous opportunities to all market participants planning to branch out into new business areas. No small wonder, banks, in particular, have been extremely supportive since the very beginning of T2S. Especially the banks which have already expressed their interest to become a DCP on the securities side are reliable partners providing valuable input to the shaping of T2S. All stakeholders in the T2S project have benefited from this input. In the past much has been said on the benefits of T2S on the securities side, on reducing risks in the post-trade environment, on streamlining the settlement process, increasing competition at CSD level and reducing the cost of settling securities transactions. Today, the focus is on the challenges and opportunities for liquidity managers. T2S will not have advantages for the securities side only but even more so for the cash side. We expect substantial liquidity savings for payment banks and their business partners. However these benefits can only be used to the full extend, if a bank decides to become a directly connected DCA holder on the cash side, in other words: a cash DCP. A cash DCP will have access to all functionalities and services offered by T2S. Let me give you some examples: - He can define a minimum or maximum liquidity amount to be available on its DCA.

3 - He has access to all monitoring features, e.g. transactions settled, pending - He can set-up a CMB and see his pending auto-collateralisation positions. - He can get all reports foreseen in T2S for DCA holders, e.g. DCA statement. An ICP would not be able to use all these options and hence I suspect all payment banks will have to become cash DCPs in order to offer the full range of possible T2S cash services to their business partners. In addition, using an A2A connection to T2S, it will be possible to integrate the monitoring and interaction with T2S in the DCP s internal system, e.g. your core banking or treasury system, maybe complemented by information and control functions of TARGET2. Challenges and opportunities In today s world for the cash settlement of securities transactions a bank needs a so-called sub-account in TARGET2. This sub-account is dedicated to a specific CSD s cash settlement process. Therefore, the liquidity of banks participating in more than one CSD has to be distributed over several liquidity pots, each of them dedicated to the settlement in one CSD. Existence of several liquidity pots requires additional liquidity. Possible liquidity surpluses in one market cannot be efficiently used to offset deficits in another market. As a consequence, liquidity buffers have to be established for each sub-account resulting in inefficient use of liquidity and extra cost. By contrast, T2S will provide each market participant with the possibility to use a single dedicated cash account. There will be only one single pot of liquidity for the cash settlement of all CSDs he is participat-

4 ing. Needless to further explain which set-up is more efficient from a liquidity management perspective. However, this opportunity might at the same time also be a challenge for liquidity managers. The liquidity on the DCA will be used for cash settlements in various CSDs. The liquidity manager will have to keep this in mind when managing and controlling the liquidity on his DCA. The DCA features will allow the DCA holder to grant access to its DCA to another entity. This entity could be a CSD, a bank or even a central bank. This entity would then have the possibility to act on behalf of the DCA holder. In case a DCA holder grants access to its DCA to another entity, the liquidity manager of the DCA holder has to be aware, that this entity can use the liquidity on the DCA without further notice or authorisation of individual transactions. Such privileges are necessary to allow the DCA holding bank to participate in several CSDs. In this case the liquidity manager has to consider that besides himself two or more other entities might use the liquidity on its DCA. The liquidity manager has to take care, that all entities having access to its account have a clear understanding on the rights, limitations and obligations in view of the DCA they are using. Those requirements will have to be clearly set out in the bilateral contracts between the DCA holder and his business partners using the account including CSDs, banks and central banks. Further opportunities for liquidity managers When T2S was launched several years ago its main benefit was the expected savings in cross-border settlement fees and given its economies of scale in a reduction of settlement fees more generally. Much attention has been paid to the fact that T2S will reduce the cost of a

5 DvP (Delivery versus Payment) instruction, because it is so easy to comprehend. However, further savings are to be expected in banks back offices due to the use of the harmonised European settlement service with its standardised interfaces, message formats and settlement process. Since the T2S project was launched, the financial crisis and subsequent regulatory requirements have changed the focus of attention which is now on liquidity and collateral optimisation. T2S offers intrinsic liquidity-saving features such as intelligent (optimisation) algorithms and wide netting effects across all participating markets, complemented by the Eurosystem s offer of autocollateralisation across all of them. Together, these factors will considerably reduce bank s liquidity needs. This is very much welcome as since the crisis broke a much larger proportion of interbank activity is now collateralised. Also, regulation is moving in the same direction. EMIR pushes for the collateralisation of OTC derivatives clearing. CRD IV (Capital Requirements Directive) and Basel III will force banks to maintain substantial liquidity buffers in addition to the assets they use as collateral. In short: in the wake of the crisis, the market needs more collateral but at the same time good collateral is becoming scarcer, following a series of rating downgrades. So is it possible to do more with less? The most promising solution to this conundrum would be to increase the velocity of the collateral that is available, ie. a rapid mobilisation and transfer of collateral from where it is to where it needs to be. And precisely the mobilisation of collateral will become much easier with T2S, as it allows for the speedy and efficient transfer of collateral among participating CSDs and their connected clients.

6 In other words: T2S helps you saving precious highly liquid collateral. With each tightening of liquidity rules. T2S and its liquidity saving features become more and more important. I cannot really quantify the liquidity savings enabled by T2S but I see three different options to save liquidity in T2S: o First, the consolidation of the multiple cash accounts for securties settlement in one dedicated cash account, the DCA o second, optimisation across all participating European CSDs in one process and o third, last but not least the service to provide autocollateralisation across all markets participating in T2S. As central banker I see of course a further very important benefit for the market, namely the efficient settlement of all domestic and crossborder securities transactions in Europa in secure central bank money. The Deutsche Bundesbank actively supports the pooling of liquidity. We are proud to offer banks in T2-Bundesbank to open DCAs in T2S and to provide auto-collateralisation already for 22 June 2015 when Wave-1-CSDs migrate to T2S. Clearstream, the German CSD, will only migrate in wave 3 but we want to be T2S-ready in June 2015 nevertheless. Of course, the other Eurosystem central banks, also stand ready to open DCAs right from the start of T2S for banks requesting DCAs. Status of the project T2S is the biggest, most complex and most ambitious infrastructure project on which the Eurosystem has embarked so far. The ECB and the 4CB, ie. the Banque de France, the Banca d Italia, the Banco de Espana and the Deutsche Bundesbank in close cooperation with the

7 CSDs and the users are taking great care to ensure the timely and fully fledged delivery of T2S. As one of the key Bundesbank officials responsible for T2S, I would like to give you a brief status update from a Bundesbank-as-part-ofthe-4CB -related perspective. The development of the T2S core software is finalized with the exception of the recently approved change requests and some requests for change which remain to be developed. The development of the non core T2S software (eg billing, statistics) is almost completed (99%). The next crucial point on our to-do list is to deliver the software by the end of March 2014, ready for the start of the Eurosystem internal acceptance testing. After the internal acceptance testing user testing will start in October 2014 with some pilot CSDs already commencing in July 2014). T2S will go-live with the migration of the first wave of CSDs on 22 June 2015 followed by 3 more waves until the beginning of For us, as central bankers providing the cash accounts for T2S, it is very important to know, about your T2S strategy. How are you going to use T2S? When will you move to T2S? How many DCAs do you need? Moreover, we are also very interested in the technical set-p of your connection to T2S. Will you directly connect as DCP or indirectly through another actor as ICP? Will you use A2A or U2A connectivity? For DCPs: Who is your VAN service provider? Especially for banks migrating in the 1st wave, those decisions and the subsequent information of the Eurosystem is urgently needed. Cash DCPs should be prepared to answer those questions by end of February 2014 at the latest, ie. in less than 100 days.

8 Thank you for your attention. I wish you to get new and useful information, the assurance that T2S will work properly and smoothly, on the cash side and that T2S will ease and make your liquidity management more efficient. I also would like to take the opportunity to wish you all Merry Chrismas and a happy New Year.

Customer related support on the T2S cash (and collateral) side looking at the Deutsche Bundesbank

Customer related support on the T2S cash (and collateral) side looking at the Deutsche Bundesbank INFORMATION EVENT FOR FUTURE DCA HOLDERS: EURO LIQUIDITY MANGEMENT IN VIEW OF T2S Frankfurt, 16 December 2013 TO 5 Operational Framework for the cash side Customer related support on the T2S cash (and

More information

T2S Special Series I Issue No 1 I April 2012 I T2S benefits: much more than fee reductions

T2S Special Series I Issue No 1 I April 2012 I T2S benefits: much more than fee reductions T2S Special Series I Issue No 1 I April 2012 I T2S benefits: much more than fee reductions T2S Special Series Issue No 2 October 2012 T2S Auto-collateralisation Author: Mehdi Manaa, T2S Programme Office,

More information

TARGET2-Securities maximises settlement efficiency in the European securities market. Department Payments and Settlement Systems

TARGET2-Securities maximises settlement efficiency in the European securities market. Department Payments and Settlement Systems maximises settlement efficiency in the European securities market Department Payments and Settlement Systems Martin Barraud George Doyle Page 2 Definition and classification of TARGET2-Securities TARGET2-Securities

More information

TARGET2 Operations

TARGET2 Operations Embargo: 20 November, 2007; 01:00 p.m. local time PRESS CONFERENCE ON THE LAUNCH OF TARGET2 FRANKFURT, 20 NOVEMBER 2007 Press conference on the launch of TARGET2 in Frankfurt on 20 November 2007 Agenda

More information

2014 Cash management in TARGET2-Securities with the Banque de France Blueprint Version 1 February 2014

2014 Cash management in TARGET2-Securities with the Banque de France Blueprint Version 1 February 2014 2014 Cash management in TARGET2-Securities with the Banque de France Blueprint Version 1 February 2014 Banque de France Version 1 February 2014 1 C O N T E N T S 1. INTRODUCTION... 5 2. CASH ACCOUNTS...

More information

MIGRATION PREPARATION SCHEDULE

MIGRATION PREPARATION SCHEDULE MIGRATION PREPARATION SCHEDULE T2S PROJECT Version 1.0 1 Contents 1 DOCUMENT MANAGEMENT 6 1.1 Document History 6 1.2 Acronyms and abbreviations 6 1.3 Reference documentation 7 2 PURPOSE OF THE DOCUMENT

More information

Workshop for TARGET2 Users - TARGET2-Securities related changes - Frankfurt am Main, 3. Juni 2015

Workshop for TARGET2 Users - TARGET2-Securities related changes - Frankfurt am Main, 3. Juni 2015 Workshop for TARGET2 Users - TARGET2-Securities related changes - Frankfurt am Main, Agenda 1. Introduction 2. Fundamentals 3. Participation 4. Business day in normal situations 5. Procedures in abnormal

More information

T2-T2S: Cash aspects. Brussels, 7 June 2012. Patrick HEYVAERT Chairman T2UG

T2-T2S: Cash aspects. Brussels, 7 June 2012. Patrick HEYVAERT Chairman T2UG T2-T2S: Cash aspects Brussels, 7 June 2012 Patrick HEYVAERT Chairman T2UG Background on TARGET2 and T2S From a T2S perspective: Bank Bank Bank Bank Bank NCBS CSDs CSDs CSDs Securities securities securities

More information

62 BANQUE CENTRALE DU LUXEMBOURG ANNUAL REPORT 2002 III

62 BANQUE CENTRALE DU LUXEMBOURG ANNUAL REPORT 2002 III 62 BANQUE CENTRALE DU LUXEMBOURG ANNUAL REPORT 2002 I II III Iv annual report 2002 IV PART iv PAYMENT AND SECURITIES SETTLEMENT SYSTEMS 63 Payment and securities settlement systems iv Payment and securities

More information

TARGET2-România. The RTGS system for interbank and customer payments in euro

TARGET2-România. The RTGS system for interbank and customer payments in euro TARGET2-România. The RTGS system for interbank and customer payments in euro SWIFT Business Forum Romania - 3 rd Edition 20 Years of SWIFT in Romania Bucharest, 11 Octomber 2012 NATIONAL BANK OF ROMANIA

More information

TARGET2-Securities. Frequently Asked Questions. March 2015

TARGET2-Securities. Frequently Asked Questions. March 2015 March 2015 Table of contents 1.0 General questions on T2S 4 1.1 What is T2S? 4 1.2 Which currencies are eligible in T2S? 4 1.3 Which instruments are eligible in T2S? 4 1.4 What are the migration wave dates?

More information

Clearstream s approach to TARGET2-Securities

Clearstream s approach to TARGET2-Securities Clearstream s approach to TARGET2-Securities FAQs as of 29 August 2012 1. What is TARGET2-Securities (T2S) about? T2S is a central pan-european settlement infrastructure platform for the cross-border and

More information

KELER A Gateway to TARGET2-Securities

KELER A Gateway to TARGET2-Securities KELER A Gateway to TARGET2-Securities T2S Info Session Amsterdam, 27 June 2014 Peter Csiszer Director, Strategy and Client Relations KELER Ltd. INTRODUCTION TO KELER GROUP KELER Group Ownership Structure

More information

COMMISSION STAFF WORKING DOCUMENT SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document

COMMISSION STAFF WORKING DOCUMENT SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document EUROPEAN COMMISSION Brussels, 7.3.2012 SWD(2012) 23 final COMMISSION STAFF WORKING DOCUMENT SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a Regulation of the European Parliament

More information

Data Migration Tool Requirements and Related Procedures

Data Migration Tool Requirements and Related Procedures Data Migration Tool Requirements and Related Procedures Version V1.2 Date 16/04/2014 Table of Content Preface... 5 1 Scope of the Data Migration Tool... 7 2 Procedural Aspects... 8 2.1 Data Migration

More information

It is both an honour and a pleasure for me to be here and to celebrate with

It is both an honour and a pleasure for me to be here and to celebrate with Drivers for change in payment and securities settlement systems Gertrude Tumpel-Gugerell European Central Bank Introduction It is both an honour and a pleasure for me to be here and to celebrate with you

More information

TARGET2 a single Europe for individual payments. Department Payments and Settlement Systems

TARGET2 a single Europe for individual payments. Department Payments and Settlement Systems a single Europe for individual payments Department Payments and Settlement Systems Page 2 TARGET2 single technical platform for processing urgent euro payments TARGET2 is the real-time gross settlement

More information

Monte Titoli T2S Handbook. Your global Post Trade partner

Monte Titoli T2S Handbook. Your global Post Trade partner Monte Titoli Handbook Your global Post Trade partner Contents 1 How LSEG will unlock the benefits of for its customers 02 1.1 LSEG and the post trade business 03 1.2 Monte Titoli: fostering a low risk

More information

T2S: Settling without borders in Europe

T2S: Settling without borders in Europe T2S: Settling without borders in Europe London School of Economics London, March 24 2014 Pierre Beck Vice-Chairman of the T2S-Board 0 1 Table of Contents T2S: Settling without borders in Europe 1 2 3 Purpose

More information

Progetto T2S: a che punto siamo?

Progetto T2S: a che punto siamo? Progetto T2S: a che punto siamo? Gli intermediari italiani tra mercato nazionale e competizione globale alla luce di uno scenario europeo in divenire Gian Bruno Mazzi Managing Director, SIA Milano, Borsa

More information

The T2S Opportunity. Unlocking the hidden benefits of TARGET2-Securities. Analysis commissioned to and conducted by

The T2S Opportunity. Unlocking the hidden benefits of TARGET2-Securities. Analysis commissioned to and conducted by The T2S Opportunity Unlocking the hidden benefits of TARGET2-Securities Analysis commissioned to and conducted by Table of contents Executive summary...3 Introduction...4 1 Regulation increasing pressure

More information

Target 2 Securities and. Challenges and opportunities for the European Fund Distribution

Target 2 Securities and. Challenges and opportunities for the European Fund Distribution Target 2 Securities and T+2 Settlement Challenges and opportunities for the European Fund Distribution Dominique Valschaerts Chief Executive Officer Fundsquare S.A. Olivier Portenseigne Chief Commercial

More information

TARGET2-Securities. Settlement services quick guide

TARGET2-Securities. Settlement services quick guide TARGET2-Securities Settlement services quick guide Contents Introduction 05 T2S is getting closer. What you need to know 06 Settlement day schedule 06 Your securities account setup 06 Your connectivity

More information

European Central Bank Secretariat Division Kaiserstrasse 29 D-60311 Frankfurt am Main Germany

European Central Bank Secretariat Division Kaiserstrasse 29 D-60311 Frankfurt am Main Germany European Central Bank Secretariat Division Kaiserstrasse 29 D-60311 Frankfurt am Main Germany Milan, April 30 th 2008 Second consultation on CCBM2 ATIC FOREX, The Financial Markets Association of Italy,

More information

Auto-collateralisation service with payment bank

Auto-collateralisation service with payment bank Auto-collateralisation service with payment bank Change Review Group meeting 6 February 2015 T2S Programme Office European Central Bank 1 T2S generated auto-collateralisation instructions T2S triggers

More information

USER INFORMATION GUIDE TO THE TARGET2 PRICING

USER INFORMATION GUIDE TO THE TARGET2 PRICING ATTACHMENT 2 USER INFORMATION GUIDE TO THE TARGET2 PRICING October 2007 Page 1 of 23 USER INFORMATION GUIDE TO THE TARGET2 PRICING Table of contents Introduction 4 1. General Overview of TARGET2 and the

More information

Clearstream Snapshot

Clearstream Snapshot Clearstream Snapshot Clearstream a trusted global name Clearstream is a global leader in post-trade securities services with more than EUR 13 trillion in assets under custody, making us one of the world

More information

PAYMENT AND SETTLEMENT SYSTEMS IN SPAIN

PAYMENT AND SETTLEMENT SYSTEMS IN SPAIN Francisco Linares Payment Settlement Systems Unit Manager Jesús Pérez Bonilla Securities Settlement Systems Unit Manager Payments Week 2005 Madrid 20 June 2005 PAYMENT SYSTEMS DEPARTMENT AGENDA PAYMENT

More information

T2S Perspectives. 12 Migration watch Migration Challenges. Issue 2 2014. Markets and Securities Services

T2S Perspectives. 12 Migration watch Migration Challenges. Issue 2 2014. Markets and Securities Services 14 Spotlights The DCP Group Corporate Actions: Compromising Harmonisation T2S Perspectives 1 Issue 2 214 Country watch A View from the Ground: Greece 12 Migration watch Migration Challenges 14 THE WATCH

More information

T2S Direct: The Swiss solution to an international challenge

T2S Direct: The Swiss solution to an international challenge T2S Direct: The Swiss solution to an international challenge The content of this presentation is prepared for general information purposes only and intended for the confidential use of the person addressed.

More information

ΤΑRGET2 Securities/BOGS BOGS functionalities in T2S

ΤΑRGET2 Securities/BOGS BOGS functionalities in T2S ΤΑRGET2 Securities/BOGS BOGS functionalities in T2S APRIL 2014 1 ΤΑRGET2 Securities/BOGS Items to be discussed 1. Static Data Management 2. Matching 3. Mapping of current operation types in T2S 4. Additional

More information

Eurosystem's vision for the future of Europe s financial market infrastructure

Eurosystem's vision for the future of Europe s financial market infrastructure Eurosystem's vision for the future of Europe s financial market infrastructure RTGS services consultative report Introduction 2 1 Technological opportunities 4 1.1 Migration of RTGS services to ISO 20022

More information

September 2014. The CSD Regulation A guide for clients

September 2014. The CSD Regulation A guide for clients September 2014 The CSD Regulation A guide for clients 1 Contents Introduction 3 About this guide 3 Background 3 Provisions for securities settlement (Title II) 4 Provision of banking-type ancillary services

More information

TradeCycle. Delivering integrated solutions for OTC derivatives

TradeCycle. Delivering integrated solutions for OTC derivatives TradeCycle Delivering integrated solutions for OTC derivatives TradeCycle 3 Innovation is key in a fast-moving world. Discover the first end-to-end OTC derivatives solution which combines the local experience

More information

T2S News Issue 06 Summer 2014

T2S News Issue 06 Summer 2014 T2S News Issue 06 Summer 2014 Contents Editorial 03 Latest news from the ECB 04 Clients adaptations to T2S 06 A superior platform to support our 08 whole T2S settlement business Cash solutions in T2S 10

More information

T2S Direct: A Swiss solution to an international challenge April 4th, 2014. Christophe Lapaire T2S Program Director

T2S Direct: A Swiss solution to an international challenge April 4th, 2014. Christophe Lapaire T2S Program Director T2S Direct: A Swiss solution to an international challenge Christophe Lapaire T2S Program Director Agenda T2S Direct: The SIX Securities Services approach T2S access models T2S account structure T2S settlement

More information

Elimination of Technical Barriers in European Securities Settlement. Torsten Schaper

Elimination of Technical Barriers in European Securities Settlement. Torsten Schaper International Review of Business Research Papers Vol. 5 No. 1 January 2009 Pp. 428-441 Elimination of Technical Barriers in European Securities Settlement Torsten Schaper Securities settlement in Europe

More information

CLARIFICATIONS ON THE T2S PRICING POLICY

CLARIFICATIONS ON THE T2S PRICING POLICY T2S PROGRAMME BOARD ECB-UNRESTRICTED 9 March 2012 09.04.01/2012/002625 Item 4.2 CLARIFICATIONS ON THE T2S PRICING POLICY Introduction During the ad-hoc meeting with CSDs on 16 February 2012, it was agreed

More information

Eesti Pank policy for the operation and oversight of payment systems and for facilitating the payment market

Eesti Pank policy for the operation and oversight of payment systems and for facilitating the payment market Eesti Pank policy for the operation and oversight of payment systems and for facilitating the payment market Under the Eesti Pank strategy for 2014 2018, it is part of Eesti Pank's mission to promote a

More information

SWIFT for central securities depositories. One solution for all a CSD s communications

SWIFT for central securities depositories. One solution for all a CSD s communications SWIFT for central securities depositories One solution for all a CSD s communications Enabling CSDs to compete in a global marketplace SWIFT for central securities depositories Streamlining communication

More information

LSEG supporting Collateral Management services

LSEG supporting Collateral Management services LSEG supporting Collateral Management services Alessandro Zignani Head of Business Development, LSEG Post Trade WFC 2015, Cancun, 20 May 2015 London Stock Exchange Group Page 1 Why Collateral Management

More information

AGENDA OF THE SIXTH MEETING OF THE T2S OPERATIONS MANAGERS GROUP (OMG)

AGENDA OF THE SIXTH MEETING OF THE T2S OPERATIONS MANAGERS GROUP (OMG) T2S OPERATIONS MANAGERS GROUP ECB-PUBLIC Katarzyna Polubinska, : 6084 17 December 2013 AGENDA OF THE SIXTH MEETING OF THE T2S OPERATIONS MANAGERS GROUP (OMG) Tuesday, 17 December 2013, 09:30-17:00 European

More information

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central E u r e x C l e a r i n g R e s p o n s e t o ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central securities depositories

More information

Capital Markets Point of View. TARGET 2 SECURITIES Are YOU on TARGET? Post Trade Services

Capital Markets Point of View. TARGET 2 SECURITIES Are YOU on TARGET? Post Trade Services Capital Markets Point of View TARGET 2 SECURITIES Are YOU on TARGET? Post Trade Services Introduction In an effort to eliminate the Giovanni Barriers tax, legal and other considerations feeding the continued

More information

Full triparty interoperability

Full triparty interoperability Clearstream Global Liquidity Hub Newsletter 0 1 / 15 Global Liquidity Hub upgrades in view of T2S Clearstream will offer harmonised collateral management and securities lending services for customers of

More information

A Guide to the Bank of England s Real Time Gross Settlement System

A Guide to the Bank of England s Real Time Gross Settlement System A Guide to the Bank of England s Real Time Gross Settlement System October 2013 2 Contents Contents... 2 1. Introduction... 3 2. History and Main Functions of RTGS... 4 3. Settlement in RTGS... 5 4. Benefits

More information

#towardst2s ESES T2S. Update meeting. Innovations in settlement services

#towardst2s ESES T2S. Update meeting. Innovations in settlement services ESES T2S Update meeting Innovations in settlement services 1 Welcome Join the conversation on Twitter #towardst2s 2 ESES T2S update meeting Harmonisation Settlement What's your view? Helping you prepare

More information

THE USE OF CENTRAL BANK MONEY FOR SETTLING SECURITIES TRANSACTIONS

THE USE OF CENTRAL BANK MONEY FOR SETTLING SECURITIES TRANSACTIONS THE USE OF CENTRAL BANK MONEY FOR SETTLING SECURITIES TRANSACTIONS MAY 2004 CURRENT AND PRACTICES THE USE OF CENTRAL BANK MONEY FOR SETTLING SECURITIES TRANSACTIONS MAY 2004 CURRENT AND PRACTICES In 2004

More information

Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems

Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems Assessment of Monte Titoli s observance of the ESCB-CESR Recommendations for Securities Settlement Systems Premise Monte Titoli is Italy s central securities depository (CSD). It manages the securities

More information

P ORTUGAL - NAT I ONAL PAYMENT SYS T EMS

P ORTUGAL - NAT I ONAL PAYMENT SYS T EMS P ORTUGAL - NAT I ONAL PAYMENT SYS T EMS World Bank Global Payments Week 2012 23 October CONTENTS I. Payment Systems in Portugal. Role of Banco de Portugal and Stakeholders. Interbank Settlement Systems

More information

STRENGTHENING MACRO AND MICRO-PRUDENTIAL SUPERVISION IN EU CANDIDATES AND POTENTIAL CANDIDATES

STRENGTHENING MACRO AND MICRO-PRUDENTIAL SUPERVISION IN EU CANDIDATES AND POTENTIAL CANDIDATES April 2012 STRENGTHENING MACRO AND MICRO-PRUDENTIAL SUPERVISION IN EU CANDIDATES AND POTENTIAL CANDIDATES A programme funded by the European Union Project Summary (not for publication) A programme implemented

More information

It is a great pleasure for me to be here in Madrid to share with you some

It is a great pleasure for me to be here in Madrid to share with you some Recent developments and policy challenges affecting large-value and retail payment systems in Europe Banque de France It is a great pleasure for me to be here in Madrid to share with you some thoughts

More information

Insights on T2S billing and invoicing

Insights on T2S billing and invoicing Insights on T2S billing and invoicing Creation date June 2014 Last updated April 2016 T2S Programme Office European Central Bank 1 Table of contents 1 T2S invoice 2 Query of billing data 3 Billing data

More information

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13 Version 1.1/5.11.13 NASDAQ OMX Clearing Investor Risks 1 Introduction This document describes the levels of protection and the costs associated with the different levels of segregation offered by, and

More information

SYLLABUS CertICM. Edition 8

SYLLABUS CertICM. Edition 8 SYLLABUS CertICM Edition 8 OVERVIEW CertICM focuses exclusively on global cash management, allowing students to appreciate the importance of and techniques relevant to cash management for corporate treasury.

More information

Collateral, UCITS and the re-use of assets Entering a new era in collateral management

Collateral, UCITS and the re-use of assets Entering a new era in collateral management Collateral, UCITS and the re-use of assets Entering a new era in collateral management Introduction Counterparty risk arising from Efficient Portfolio Management techniques (EPM) and financial derivative

More information

Information guide. for TARGET2 users. Version 3.0

Information guide. for TARGET2 users. Version 3.0 Information guide for TARGET2 users Version 3.0 October 2009 1 Table of contents Information guide for TARGET2 users Table of contents 1. INTRODUCTION... 6 1.1. WHAT IS TARGET2?... 6 1.2. HOW TO USE THE

More information

CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck,

CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck, CMU and a review of the regulatory initiatives affecting the international securities markets ICMA/NCMF Bond Market Seminar, Helsinki Martin Scheck, 22 January 2015 Contents Introduction current status

More information

PAY M E N T S Y S T E M S A N D M A R K E T I N F R A S T R U C T U R E OVERSIGHT REPORT

PAY M E N T S Y S T E M S A N D M A R K E T I N F R A S T R U C T U R E OVERSIGHT REPORT Pay m e n t s y s t e m s a n d m a r k e t i n f r a s t r u c t u r e Ov e r s i g h t R e po r t 2 0 0 7 j u ly 2 0 0 8 PAYMENT SYSTEMS AND MARKET INFRASTRUCTURE OVERSIGHT REPORT 2007 july 2 0 0 8 In

More information

How To Understand And Understand The Euro 2.2

How To Understand And Understand The Euro 2.2 Information guide for TARGET2 users Version 4.0 November 2010 Information guide for TARGET2 users Version 4.0 1 Table of contents Information guide for TARGET2 users Table of contents 1. INTRODUCTION...

More information

Funding, Collateralization and T2S

Funding, Collateralization and T2S Funding, Collateralization and T2S Threat or Opportunity? targit GmbH 2014 targit. All rights reserved. 1 Content (1) What are the drivers for the next years? (2) How does T2S fit in? (3) T2S integrated

More information

Elimination of Technical Barriers in European Securities Settlement

Elimination of Technical Barriers in European Securities Settlement Elimination of Technical Barriers in European Securities Settlement Torsten Schaper Johann Wolfgang Goethe-University Frankfurt, Chair of e-finance, Robert-Mayer-Str. 1 60054 Frankfurt, Germany Schaper

More information

1. Legal/business importance parameter: Critical 2. Market implementation efforts parameter: Low

1. Legal/business importance parameter: Critical 2. Market implementation efforts parameter: Low General Information (Origin of Request) User Requirements (URD) Other User Functional or Technical Documentation (SYS) Request raised by: Migration Sub-group Institute: ECB Date raised: Request title:

More information

improvements to commercial bank money (CoBM) settlement arrangements for collateral operations

improvements to commercial bank money (CoBM) settlement arrangements for collateral operations improvements to commercial bank money (CoBM) settlement arrangements for collateral operations JULY 2014 In 2014 all publications feature a motif taken from the 20 banknote. improvements to commercial

More information

0 1 / 14. Clearstream Global Liquidity Hub Newsletter. A single master contract for multiple triparty repo counterparties

0 1 / 14. Clearstream Global Liquidity Hub Newsletter. A single master contract for multiple triparty repo counterparties Clearstream Global Liquidity Hub Newsletter 0 1 / 14 A single master contract for multiple triparty repo counterparties In June 2013, Clearstream developed a new legal master agreement for triparty repo

More information

Collateral, UCITS and the re-use of assets Entering a new era in collateral management

Collateral, UCITS and the re-use of assets Entering a new era in collateral management Collateral, UCITS and the re-use of assets Entering a new era in collateral management Introduction Counterparty risk arising from Efficient Portfolio Management techniques (EPM) and financial derivative

More information

Internalisation and Consolidation of the Settlement of Payments and Securities Transactions. Hermann-Josef Lamberti

Internalisation and Consolidation of the Settlement of Payments and Securities Transactions. Hermann-Josef Lamberti Internalisation and Consolidation of the Settlement of Payments and Securities Transactions by Hermann-Josef Lamberti Member of the Board of Managing Directors Deutsche Bank At the Global Conference on

More information

The 300-billion-euro Question Survey on the Benefits of TARGET2-Securities

The 300-billion-euro Question Survey on the Benefits of TARGET2-Securities www.pwc.de The 300-billion-euro Question Survey on the Benefits of TARGET2-Securities How T2S can provide relief from Basel III capital requirements How T2S can provide relief from Basel III capital requirements

More information

Specific clarifications regarding the re-use of collateral are foreseen in respect of the rules in the proposed SFTR (Article 15(2) of the proposal).

Specific clarifications regarding the re-use of collateral are foreseen in respect of the rules in the proposed SFTR (Article 15(2) of the proposal). 13 May 2015 COGESI contribution for CMU on collateral management services (CMS) Introduction The Contact group on euro securities infrastructures (COGESI) consists of representatives of major market infrastructures

More information

EDITORIAL. I hope that you will enjoy this issue of T2S OnLine and wish our readers a merry Christmas and a very happy new year 2015!

EDITORIAL. I hope that you will enjoy this issue of T2S OnLine and wish our readers a merry Christmas and a very happy new year 2015! T2S OnLine I No 20 19, December July 2014 2014 1 T2S OnLine P R O J E C T R E V I E W No 20, December 2014 EDITORIAL NEWS FROM THE T2S PROJECT INTERVIEW WITH MEHDI MANAA T2S PREPARING FOR OPERATIONS T2S

More information

SUMMARY OF THE SECOND AD HOC MEETING OF THE CONTACT GROUP ON EURO SECURITIES INFRASTRUCTURES (COGESI) ON CCBM2

SUMMARY OF THE SECOND AD HOC MEETING OF THE CONTACT GROUP ON EURO SECURITIES INFRASTRUCTURES (COGESI) ON CCBM2 09.03.03/2008/000024 SUMMARY OF THE SECOND AD HOC MEETING OF THE CONTACT GROUP ON EURO SECURITIES INFRASTRUCTURES (COGESI) ON CCBM2 (HELD IN FRANKFURT AM MAIN ON 28 MAY 2008 FROM 1 P.M. TO 3 P.M.) 1. Opening

More information

OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS

OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS OVERSIGHT STANDARDS FOR EURO RETAIL PAYMENT SYSTEMS 1 Introduction The oversight of payment systems is an essential function of central banks and aims to ensure the smooth functioning of payment systems

More information

Introduction of Free Trade Zone RMB Bond Business

Introduction of Free Trade Zone RMB Bond Business Introduction of Free Trade Zone RMB Bond Business Yidan WANG wangyidan@shclearing.com April 2016 London Contents Company Overview Business Background Business Model Future Plan 第 四 章 A brief look into

More information

International Monetary Fund Washington, D.C.

International Monetary Fund Washington, D.C. 2013 International Monetary Fund March 2013 IMF Country Report No. 13/72 January 22, 2013 January 29, 2001 January 29, 2001 January 29, 2001 January 29, 2001 European Union: Publication of Financial Sector

More information

The CMU Fund Order Routing and Settlement Service

The CMU Fund Order Routing and Settlement Service The CMU Fund Routing and Settlement Service by the Financial Infrastructure Department Investment funds have become an increasingly important international financial intermediation channel in addition

More information

Recovery and Resolution of CCPs: let s bring the lifeboats in place

Recovery and Resolution of CCPs: let s bring the lifeboats in place Date: 24 June 2016 ESMA/2016/1002 Recovery and Resolution of CCPs: let s bring the lifeboats in place Banque de France s policy conference on Recovery and Resolution of CCPs Paris, 24 June 2016 Steven

More information

TARGET2-SECURITIES OPERATIONAL FEASIBILITY

TARGET2-SECURITIES OPERATIONAL FEASIBILITY 8 March 2007 TARGET2-SECURITIES OPERATIONAL FEASIBILITY TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2 2. OPERATIONAL ROLES FOR T2S STAKEHOLDERS 5 3. OVERVIEW OF T2S FUNCTIONAL BLOCKS AND INTERFACES 8 4. CROSS-CSD

More information

Liquidity management with clockwork precision

Liquidity management with clockwork precision Liquidity management with clockwork precision Cash management and payments Corporate Banking Efficient management of accounts and cash flows Professional management of accounts and cash flows is a key

More information

(Legislative acts) REGULATIONS

(Legislative acts) REGULATIONS 28.8.2014 Official Journal of the European Union L 257/1 I (Legislative acts) REGULATIONS REGULATION (EU) No 909/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 July 2014 on improving securities

More information

If time equals risk, settle quickly

If time equals risk, settle quickly FEATURE MI FORUM / 2014 If time equals risk, settle quickly In investment, time equals money, while in operations time equals risk, but both ultimately mean the same thing. Time both makes and costs money,

More information

Key Points. Ref.:EBF_007865E. Brussels, 09 May 2014

Key Points. Ref.:EBF_007865E. Brussels, 09 May 2014 Ref.:EBF_007865E Brussels, 09 May 2014 Launched in 1960, the European Banking Federation is the voice of the European banking sector from the European Union and European Free Trade Association countries.

More information

Investment Funds Processing Achieving Best Practice Assessing our compliance with ISSA principles. An analysis of our Investment Funds Services

Investment Funds Processing Achieving Best Practice Assessing our compliance with ISSA principles. An analysis of our Investment Funds Services Investment Funds Processing Achieving Best Practice Assessing our compliance with ISSA principles An analysis of our Investment Funds Services 2 Investment Funds Processing Achieving Best Practice Assessing

More information

Ohrid, 4 June 2012 NATIONAL BANK OF THE REPUBLIC OF MACEDONIA 5TH CONFERENCE ON PAYMENT AND SECURITIES SETTLEMENT SYSTEMS

Ohrid, 4 June 2012 NATIONAL BANK OF THE REPUBLIC OF MACEDONIA 5TH CONFERENCE ON PAYMENT AND SECURITIES SETTLEMENT SYSTEMS NATIONAL BANK OF THE REPUBLIC OF MACEDONIA 5TH CONFERENCE ON PAYMENT AND SECURITIES SETTLEMENT SYSTEMS Rui Pimentel BANCO DE PORTUGAL ORGANISATION AND ACTIVITIES IN PAYMENT SYSTEMS Payment Systems Department

More information

T2S High Level Proposals The view of a CSD

T2S High Level Proposals The view of a CSD T2S High Level Proposals The view of a CSD Paolo Carabelli Monte Titoli Spa June 25, 2007 Frankfurt, T2S Tri-Party Meeting Background - Starting point Current Monte Titoli settlement system is: extremely

More information

BUSINESS JUSTIFICATION

BUSINESS JUSTIFICATION BUSINESS JUSTIFICATION FOR THE DEVELOPMENT OF NEW UNIFI (ISO 20022) FINANCIAL REPOSITORY ITEMS A. Name of the request: Bank Account Management (BAM) B. Submitting organization(s): S.W.I.F.T. scrl Standards

More information

1. Definition of cash components

1. Definition of cash components Opinion n 2015-06 of 3 July 2015 relating to Central Government Accounting Standard 10 Cash Components On 3 July 2015 the Public Sector Accounting Standards Council adopted this Opinion relating to Central

More information

How To Understand The Interdependencies Of Payment And Settlement Systems In Hong Kong

How To Understand The Interdependencies Of Payment And Settlement Systems In Hong Kong Interdependencies of payment and settlement systems: the Hong Kong experience by the Financial Infrastructure Department Payment and settlement systems around the world have become more interdependent

More information

Register ID number: 3373670692 24

Register ID number: 3373670692 24 EFAMA reply to European Commission consultation paper on Central Securities Depositories (CSDs) and on the Harmonisation of Certain Aspects of Securities Settlement in the European Union Register ID number:

More information

Service Overview 1 June 2012

Service Overview 1 June 2012 Service Overview 1 June 2012 Contents 1.0 Preface 3 1.1 About European Central Counterparty Limited 3 2.0 Introduction 4 2.1 About European Central Counterparty Limited 4 2.2 Benefits of participation

More information

Committee on Payments and Market Infrastructures. Developments in collateral management services

Committee on Payments and Market Infrastructures. Developments in collateral management services Committee on Payments and Market Infrastructures Developments in collateral management services September 2014 This publication is available on the BIS website (www.bis.org). Bank for International Settlements

More information

12 / 15. Clearstream Vestima Newsletter. Integrated solution for trade execution and custody across all fund types

12 / 15. Clearstream Vestima Newsletter. Integrated solution for trade execution and custody across all fund types Clearstream Vestima Newsletter 12 / 15 Integrated solution for trade execution and custody across all fund types Clearstream has successfully integrated the hedge fund processing application acquired from

More information

White Paper. T2S Towards post-trade efficiency. Abstract

White Paper. T2S Towards post-trade efficiency. Abstract White Paper T2S Towards post-trade efficiency - Sushama Jaiswal and Prashanth Krishnamoorthy Abstract TARGET2-Securities (T2S) intends to create a pan-european settlement engine that will provide centralized

More information

CLEARING EQUIDUCT Service Offer. 14 April 2008

CLEARING EQUIDUCT Service Offer. 14 April 2008 CLEARING EQUIDUCT Service Offer 14 April 2008 Disclaimer This document is solely intended as information for clearing members and others who are interested in the Equiduct s project. It is a commercial

More information

Assessment of the VP settlement system

Assessment of the VP settlement system 1 Assessment of the VP settlement system against the ESCB/CESR Recommendations for Securities Settlement Systems March 2012 2 Contents 1 Introduction...3 1.1 Recommendations for securities settlement systems...

More information

Trading Strategy. 5 March, 2012. Eurosystem 101. Martin Enlund, +46 (0)8-46 346 33, maen12@handelsbanken.se

Trading Strategy. 5 March, 2012. Eurosystem 101. Martin Enlund, +46 (0)8-46 346 33, maen12@handelsbanken.se Trading Strategy 5 March, 2012 Eurosystem 101 Martin Enlund, +46 (0)8-46 346 33, maen12@handelsbanken.se Repos automatically boosts bank s deposits at the ECB 2 1) Normal times Before LTRO (interbank lending

More information

T+2 IMPLEMENTATION Questions & Answers

T+2 IMPLEMENTATION Questions & Answers T+2 IMPLEMENTATION Questions & Answers BACKGROUND The Nordic Securities Association, Euroclear Finland, Euroclear Sweden and other Nordic Central Securities Depositories (CSDs), Central Counterparts (CCPs),

More information

T2S financials: status update

T2S financials: status update 0 T2S financials: status update T2S Advisory Group Frankfurt am Main, 17-18 June 2014 T2S Programme Office European Central Bank Item 5.1 T2S financials: status update Eurosystem s reporting obligation

More information

Clearing and Settlement in the EU

Clearing and Settlement in the EU DG INTERNAL POLICIES OF THE UNION Policy Department Economic and Scientific Policy Clearing and Settlement in the EU (IP/A/ECON/IC/2009-001) Abstract This report examines the role of post-trading clearing

More information

www.deutsche-boerse.com Half-yearly financial report

www.deutsche-boerse.com Half-yearly financial report www.deutsche-boerse.com Half-yearly financial report Quarter 2/2015 Deutsche Börse Group: key figures Consolidated income statement Quarter Six months 30 Jun 2015 30 Jun 2014 30 Jun 2015 30 Jun 2014 Net

More information