Clearstream Gets Three Agent Banks for T2S Asset Servicing Model

Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA are developing an asset servicing model preparation for TARGET2-Securities (T2S).
By Janet Du Chenne(59204)
Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA are developing an asset servicing model preparation for TARGET2-Securities (T2S).

In this model, Clearstream will connect via its central securities depository (CSD) to the T2S platform, while the custodian bank partners will handle asset servicing at a domestic market level. BNP Paribas Securities Services will provide services in Belgium, France and the Netherlands, Intesa Sanpaolo will provide services in Italy and BBVA will provide services in Spain.

The model is expected to be ready for when Clearstream joins the harmonized platform for securities settlement in the Eurozone in September 2016.

T2S will cause a decoupling of settlement revenues from asset servicing revenues among securities services providers, forcing sub-custody providers to ascend the value chain through offerings such as corporation actions and tax reclamations in the domestic markets in which they operate.

Clearstream’s customers can use the provider’s integrated ICSD and CSD settlement franchise in either commercial or central bank money on the T2S platform combined with asset servicing in a domestic market environment. Customer benefits
include improved notification timelines and corporate action deadlines, increased quality via services tailored to the local market and reduced operational risk by leveraging the local partner’s proximity to the market, says Clearstream.

Following the initial development of this model with the three founding partners, Citi and Erste Group Bank have also confirmed their collaboration with Clearstream to develop a T2S asset servicing model for Greece and Austria respectively. The model is open to further local bank partners.

Alain Pochet, head of Clearing and Custody at BNP Paribas Securities Services, commented: “The new model for T2S which we are developing with Clearstream will offer clients all the settlement benefits of the T2S platform, in addition to asset servicing, which goes beyond the scope of T2S, and will be supported through our strong local expertise in France, Belgium and the Netherlands. While bringing solid value to Clearstream and to its clients, this additional model enables us to continue developing our strong, long-standing relationship with Clearstream.”

Enrique Jiménez-Herrera, head of Global Transaction Banking at BBVA,
says: “The focus on value added services such as corporate action and tax reclaim services will be the name of the game in the T2S environment. In a nutshell, Clearstream customers will have the advantages of being clients of an ICSD and CSD together with the excellent asset servicing provided by a local agent.”

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