BNP Paribas Securities Services has secured custody mandates for four Italian banks, as the Italian market gears for the launch of TARGET2 Securities (T2S) in June this year.
The banks, Banco di Credito Popolare, Banca Popolare dell’Alto Adige, Banca Popolare di Vicenza and Veneto Banca, have also mandated BNP Paribas Securities Services to provide settlement and liquidity services.
Italy is one of the first markets to go live on the pan-European trade settlement platform, which will harmonize cross-border settlements in Europe.
“We will provide them with a single point of contact for settling both their domestic and cross border transactions and accessing banking services such as liquidity management,” says Alessandro Gioffreda, head of BNP Paribas Securities Service in Italy, Switzerland and the Mediterranean Basin.
By connecting to T2S through a local custodian, banks can take advantage of new efficiencies created by T2S, while saving on implementation costs.
European market participants and infrastructures are now in the final preparatory phases of T2S, with many establishing direct links with central securities depositaries (CSDs) in other countries.
globeSettle, the Luxembourg-based CSD owned by London Stock Exchange Group (LSEG), is gearing up for its launch after winning approval from the Luxembourg central bank. When Italy goes live on T2S, it will connect with Monte Titoli, the Italian CSD also owned by LSEG.
Italian Banks Brace for T2S with BNP Paribas Securities Services
BNP Paribas Securities Services has secured custody mandates for four Italian banks, as the Italian market gears for the launch of TARGET2 Securities (T2S) in June this year.