Euroclear has brought on Intesa Sanpaolo, Italy’s second largest bank, to its Single CSD platform for TARGET2 Securities (T2S).
The Single CSD model will provide access to T2S settlement, allowing clients to operate their own account with or without a third-party asset servicing agent.
“We are delighted to have reached, in close collaboration with Euroclear, this important milestone as a result of our successful collaboration animated at evolving and extending the services for our clients,” said Stefano Favale, head of global transaction banking, corporate and investment banking, Intesa Sanpaolo Group.
The Single CSD model currently covers the Euroclear Settlement of Euronext-zone securities (ESES) markets, which include Belgium, France, Germany, Italy, the Netherlands and Spain, with other T2S markets to be gradually rolled out.
Euroclear’s model is based on an open architecture, allowing users to select their preferred asset servicer and collateral management provider for securities settled on T2S.
Last year, Euroclear partnered with Deutsche Bank and Northern Trust to create a single service multi-provider offering covering the entire value chain of T2S.
Northern Trust, as the global custodian, would perform settlement and central bank funding, while Euroclear, as the issuer CSD, would offer its Single CSD account structure as well as tri-party services. Finally, Deutsche Bank would offer local connectivity and asset servicing.
Meanwhile, Euroclear’s international central securities depository (ICSD) rival, Clearstream, has gone live with its own Investor CSD model to compete for T2S market share.
The Investor CSD service, which provides a single access point for banks to access the pan-European settlement platform, is live for six markets including Austria, Belgium France, Italy, Luxembourg and the Netherlands.
The new account structure has brought around 80% of the custody and settlement volume of T2S markets onto Clearstream’s Investor CSD services.