Societe Generale Securities Services (SGSS) is to widen the scope of its implementation of direct connectivity to the Target-2 Securities (T2S) platform.
T2S will provide participating central securities depositories with a single platform to which they may opt to outsource their securities settlement and position-keeping.
It will operate under a single set of harmonised operating rules and business processes aimed at bringing down barriers to cross-border post-trade activities in Europe.
When the first wave of T2S is launched in Italy and Switzerland in June 2015, SGSS, which has a long-standing presence in the major markets of the future T2S zone, will already have direct connectivity for the settlement of Italian and Swiss securities. It intends to implement direct connectivity to T2S for all five markets which will join T2S in the second wave, scheduled for the end of March 2016 : Euroclear ESES Central Securities Depositories – France, Belgium and the Netherlands, Interbolsa (Portugal) and NBB-SSS (Belgium for fixed income). This will expand SGSS Directly Connected Participant (DCP) capabilities to a total of seven T2S markets.
T2S will also provide real-time gross settlement in central bank money with the national central banks, providing opportunities to reduce liquidity requirements through cash pooling and collateral mobilisation across the zone. SGSS will, in addition, act as payment bank in T2S, providing cash to central securities depository participants to support the settlement of securities.
“Providing full market coverage as a DCP during the second wave demonstrates our readiness to accompany our clients in reaching their objectives – whether they are targeting a full custody package or selected unbundled services,” says Guillaume Heraud, global head of development for financial institutions and brokers at SGSS. “SGSS is strengthening its one-stop-shop value proposition and taking it to a new level with access to clearing, custody, asset servicing only and liquidity management services across the Euronext zone.”
