Northern Trust has selected Deutsche Bank and Euroclear to support its strategy ahead of the implementation of Target2-Securities, or T2S, the centralized securities settlement system aiming at harmonizing settlement infrastructure across Europe.
An initiative driven by the European Central Bank (ECB), T2S hopes to reduce the risks and the costs of cross-border securities settlement while bringing more competition in the post-trade services world.
"T2S is a significant step forward in creating a single market infrastructure for financial services, supporting decreased counterparty and settlement agent risk, and fostering greater efficiency and integration of European financial markets," says Wilson Leech, head of Europe, Middle East and Africa at Northern Trust. "By appointing Deutsche Bank and Euroclear, Northern Trust is well positioned to support new centralized delivery-versus-payment settlement in central bank funds across European securities markets, on behalf of our clients."
Northern Trust will benefit from direct market connectivity through Euroclear's Investor Central Securities Depositary (CSD) solution, and will outsource asset servicing capabilities from Deutsche Bank.
James talks about his trip to Chicago and some of the interesting topics that came up (including a look at disaster recovery demands). Then Anthony and James touch on ISDA's initial margin rules, with Phase 3 going live next year.Subscribe to Weekly Wrap emails