CSDR

Earlier this month, Euroclear UK & Ireland (EUI) issued a consultation to participants concerning their proposals to enhance the US dollar settlement arrangements in the CREST system, and make relevant changes to CREST documentation. Thomas Murray wholeheartedly supports these proposals.

Monte Titoli completed the first Wave of migration to the ECB’s T2S platform on 31 August 2015. In doing so, Italy became the largest market to migrate to the platform to date, the ECB’s plan being to introduce one major market in each of the four Waves, beginning with Italy. Euroclear’s planned delay has put a spanner in this works, however, with uncertainty lingering over when France, Germany and Spain will now migrate to the platform.

Euroclear has announced that its Belgian, Dutch and French CSDs will not be migrating to the ECBs flagship settlement platform, T2S (Target2-Securites) on 28 March 2016 as originally planned. This is the date for Wave 2 migration to the platform, following on from Wave 1 on 22 June 2015 and what some have termed Wave 1a on 31 August.

As we looked at last week, Northern Trust mapped out its response to T2S very early on, meaning that it had everything in place for when the pan-European settlement platform went live on 22 June.

Northern Trust surprised its competitors by announcing how it would manage the transition to T2S a good nine months before the first markets joined the new settlement platform on 22 June 2015. Its solution was a practical one, which recognises the fact T2S is essentially a settlement platform. It combines direct access to T2S settlement services, with a single asset-servicing agent. To access central bank money at the ECB, Northern Trust is using its full bank branch in Luxembourg to enter the euro-system via the Banque Centrale du Luxembourg.

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