MARKET INFRASTRUCTURE

ABN Amro to use Monte Titoli for Italian T2S access

ABN Amro Clearing will settle Italian securities directly with Monte Titoli, the LSE-owned Italian CSD.

By Joe Parsons joe.parsons@strategic-i.com November 17, 2017 12:41 PM GMT

ABN Amro Clearing has linked up with Monte Titoli as a directly connected party to access TARGET2 Securities (T2S) for the Italian securities market.

The Dutch bank stated it has transferred all customer portfolios to Monte Titoli’s accounts, and will settle Italian securities directly with the central securities depository (CSD).

“Implementing T2S was a formidable project for ABN AMRO Clearing and for the industry. It is great to see that we can now capitalise on these efforts to further streamline our street side connections and become a direct member of Monte Titoli,” said Reinier van Dam, global head core services and network management, ABN Amro Clearing Bank.

Monte Titoli, the Italian CSD owned by the London Stock Exchange Group (LSEG), was one of the first to go live on the pan-European settlement platform in August 2015.

Revenues for Monte Titoli for the first half of 2017, in combination with LSEG’s Italian clearing house CC&G, have increased 8% since going live on the platform to £74 million, as chargers for banks using its T2S services were cited as the main cause for its 47% increase in sales.

It also posted a 27% rise in settlement and custody revenue, due to a “small increase in settlement instructions and assets under custody up 2% to €3.24 trillion.”

In December last year BNY Mellon migrated its clients’ assets to direct accounts with Monte Titoli, moving away from using sub-custodians for settlement and instead opting for the CSD in Italy.  

“With over two years’ experience gained on T2S, we are confident that we will be able to help ABN AMRO Clearing boost its operating efficiency and allow to also settle Italian instruments in central bank money,” said Mauro Dognini, CEO, Monte Titoli.

“Our T2S gateway service enables us to provide our customers with settlement, asset servicing and fiscal services. It underpins our focus to target and service international clients with sophisticated needs.”