Milan and London, 12 December 2013 – SIA, in partnership with Colt, has won the tender to connect Monte Titoli, a London Stock Exchange Group company, to TARGET2-Securities (T2S), the new centralised European platform for the settlement of domestic and cross-border securities transactions.
Monte Titoli, which boasts a large pool of international customers including over 400 banks and brokers and offers services to more than 2,000 issuers, will be taking part in the first phase of migration to TARGET2-Securities, scheduled for June 2015. That means SIA and Colt expect most of the transactions generated by banks and central depositories (CSDs) taking part in the first “wave” of migration to T2S will be carried on their network infrastructure.
In addition, SIA and Colt will also provide a message broker solution based on the “Smart Integrator Advanced” platform, which will facilitate the integration of business applications to the TARGET2-Securities central platform.
Last year, the European Central Bank (ECB) granted one of the two licenses as Network Service Provider for T2S, to SIA and Colt, mainly due to the technology leadership of the two companies in the financial services sector, their strong presence across Europe and an outstanding track record in delivering and operating mission critical infrastructures.
Recently, SIA and Colt have successfully completed the Eurosystem Network Acceptance Test phase foreseen in the License Agreement. This achievement completes a milestone in the T2S Programme Plan almost one month ahead of schedule.
SIA and Colt’s network architecture permits CSDs, Eurozone national central banks and the main bank groups operating in Europe to connect to the new platform to settle securities transactions, guaranteeing total security and confidentiality in data transmission, high standards of reliability and 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 financial 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.
“The decision by Monte Titoli to call on the support of SIA in the migration from the current domestic platform to T2S strengthens our collaboration with London Stock Exchange Group as its partner of choice also for post-trading and confirms SIA's role as a competitive player in Europe,” commentedMassimo Arrighetti, CEO of SIA.
"With this significant success within T2S, we are proud to strengthen our collaboration with SIA. Colt's consolidated experience in the financial industry, its international network and long-time relationship with LSE, have been fundamental to the connection of Monte Titoli to Target2Securities", statedHugh Cumberland, Financial Services Solutions Manager, Colt.
Alessandro Di Michele, Monte Titoli said: “We are very pleased to be partnering with SIA and Colt as we continue to work towards implementation of the T2S project. Monte Titoli will be the largest CSD participating in the first wave of T2S, due to go live in 2015, which will provide our customers access to a more harmonised, cost-efficient, settlement process”.