Paris-based software firm Vermeg says the Bank of France has bought its Megara securities processing platform.
The central bank’s so-called PRISME 7 project aims to modernise its custody and depository technology, and install a new platform for managing securities transactions generated by its membership of the European System of Central Banks (ESCB).
After an overview of the European market, a selection process and a first proof of concept phase that started towards the end of 2005, the bank has now confirmed the selection of Megara.
The PRISME 7 project covers several activities run by the Post-trade Operations Department, which the central bank created in February 2006 by merging its Securities Department with its Back Office Department. They include collateral management; operational support of the French Treasury Agency; custody of institutional clients’ securities; and the depository activity of the bank in the mutual fund market.
“Belonging as it does to the ESCB, the Bank of France participates actively in the shaping of monetary policy and the management of collateral,” says Jean-Louis Landais, Director of Post -Trade Operations. “It has to adapt to the continuous evolution of the global and European financial markets and systems. The upgrading of our securities platforms was vital in order to meet such developments as Target 2, the development of guarantees in foreign securities, the European restructuring of both Stock Exchanges and Central Depositories, and the modernisation of delivery and settlement systems.
After a rigorous selection process, the MEGARA software suite from Vermeg seemed to us to best meet the totality of our current requirements and to satisfy their future evolution. Its comprehensive coverage, its development tools based on a modern JAVA /J2EE platform, as well as the professionalism of its management team all contribute to the project’s success and the long term viability of the solution”.
Christian Cure, Executive Vice President of VERMEG, says adding a central bank to the client roster for Megara is an important confirmation of the quality of the system.