Milan and London, March 4th, 2015 – SIA, in partnership with Colt, has been awarded the contract to connect Hungarian central securities depository KELER to TARGET2-Securities (T2S), the new single European platform for the settlement of transactions in domestic and cross-border securities.
Owned 53.33% by the Central Bank of Hungary (CBH) and 46.67% by the Budapest Stock Exchange (BSE), KELER provides wholesale services and infrastructure to the players and intermediaries of the Hungarian Capital Markets. It will migrate to TARGET2-Securities in the third phase planned for September 2016, and will be among the first central securities depositories (CSDs) in Central and Eastern Europe to access the platform directly.
SIA and Colt have recently completed the successful implementation of their connectivity solution. This will enable KELER to commence the functional test phase in line with the migration framework.
SIA and Colt’s value added network infrastructure enables CSDs, central banks in the Eurosystem and the leading banks operating in Europe to connect to the new European platform for the settlement of transactions in securities, guaranteeing total security and confidentiality in the transmission of data, along with the highest standards of reliability, performance and service continuity.
TARGET2-Securities, a project promoted by the ECB which will be managed by four central banks (Banca d’Italia, Deutsche Bundesbank, Banque de France and Banco de Espana), is one of the initiatives for the creation of the single European market following the Euro, TARGET2, SEPA (Single Euro Payments Area) and PSD (Payment Services Directive). According to forecasts from the European Central Bank, TARGET2-Securities will be capable of handling a daily average of over 1 million securities transactions, also contributing to a significant reduction in cross-border settlement costs.
SIA and Colt were awarded one of the two Value Added Network Service Provider licenses for T2S by the European Central Bank (ECB),demonstrating their leadership in the financial services sector, strong network and service presence across Europe and proven experience in the supply and management of ‘mission critical’ solutions.
“The success in the KELER bid, in partnership with Colt, further strengthens SIA’s position at international level and particularly in Central and Eastern Europe where we have a portfolio of around 60 customers. This project confirms SIA’s ability to complete, in a short timescale, innovative and complex projects that permit our customers to focus exclusively on their business. Our technology infrastructures will carry th e securities transactions of Hungary, a country with positive economic growth trends in which we are already operating through our subsidiary SIA Central Europe”, commentedGian Bruno Mazzi, Senior Vice President of SIA.
“Together with SIA, we are delighted to announce that Hungarian CSD KELER has chosen our service to connect to the ECB platform, ” says Hugh Cumberland, Capital Markets solution manager, Colt. “2015 is going to be an exciting year for the T2S programme. We are proud that a large proportion of the volume of traffic in wave 1 will be carried by SIA-Colt, but this is only the very beginning of the pan-European migration process to the single platform. As we continue to invest in expanding our global Colt Capital Markets offering, the services we provide to underpin Europe’s payment and settlement structure will remain a key pillar of what we provide to the Capital Markets ecosystem. ”
“ I am convinced that w e have selected a network solution that best suits the needs of the KELER Group, and thereby we enhance our capabilities and offering to meet the deadline for T2S Settlement as well”, said Gyorgy Dudas, CEO of Keler Ltd. ”With the SIA-Colt support, we will offer regional investor CSD services including standardized T2S settlements, safekeeping and optional ancillary solutions. Our safekeeping in Central-Eastern Europe will be provided by direct CSD links, while our asset and local currency services will be supported by professional partners”, he continued.