Clearstream and BNP Paribas Securities Services Team For T2S

Clearstream and BNP Paribas Securities Services have signed a partnership agreement to develop a new asset servicing model for TARGET2-Securities (T2S), the incoming platform that will harmonize securities settlement in the Eurozone.

In this new model, Clearstream will connect to T2S through its German central securities depository (CSD) to attract settlement flows, while its custodian bank partners will handle asset servicing, such as corporate actions processing, at a domestic level. BNP Paribas Securities Services will provide asset servicing for the Belgian, French and Dutch markets.

Clearstream said in a statement that it will progress with other agent bank partners to extend its market coverage.

“These models go beyond the functional scope of T2S to include features such as liquidity and collateral management and can be customised to best suit our clients’ needs,” says Alain Pochet, head of clearing and custody, BNP Paribas Securities Services.

BNP Paribas Securities Services is the latest bank to sign up with Clearstream, after the ICSD announced it will partner with Deutsche Bank in July to help clients optimize collateral as part of T2S.

“Once T2S has gone live, our customers will benefit from a one-stop shop solution that goes beyond settlement services. Banks decide on their T2S partners now – our proposal is on the table,” adds Berthold Kracke, head of business management, Clearstream.