ECB expands T2S connectivity options

The European Central Bank (ECB) has selected SIA and Colt’s network infrastructure to connect to Target 2 securities (T2S).

The development will improve connectivity to T2S and offer more competitive options for those connecting to the platform.

SIA and Colt are expected to migrate their infrastructure with the ECB in June this year allowing the ECB access to software based on INTERCOPE’s BOX messaging hub facilitating the integration of current ECB software to the T2S platform.

Under this infrastructure all approved entities will be able to connect to the T2S platform, including CSDs, CCPs and European banks.

Since T2S went live in June 2015, SIA and Colt have handled an average of 11 million securities transactions messages a month.

Implemented by the Eurosystem and operated by four European central banks, T2S was created with the aim of creating a single pan-European harmonised settlement structure.

The adoption of new infrastructure partners by the ECB is the latest T2S development following a number of developments in recent months.

In October 2015 Euroclear announced that it would not be joining the project at its initial March 2016 launch date, requesting further preparation time.

Furthermore, as Global Custodian reported last week the chairman of Clearstream Jeffrey Tessler suggested that the proposed savings of millions of pounds a year under T2S would be more difficult to achieve than previously thought.