The London Stock Exchange Group has announced that Monte Titoli, its Italian Central Securities Depository (CSD) is launching a new tri-party collateral management service.
Named X-COM, the platform will see Monte Titoli act as a neutral third-party agent for collateral transactions within the interbank market. In a multi-phasic deployment, the platform will initially support Eurosystem credit transactions, later extending to financing, securities lending and margin management.
"The new X-COM service responds to our customers' growing need for diversification of financing tools and efficiency on the markets, offering a collateral management service essential to every market participant," says Paolo Cittadini, CEO at Monte Titoli. "This project has a systemic relevance, not only for the entity and quantity of subjects involved but to support the the interbank market."
The release comes at a time when Eurosystem CSDs are looking to diversify and extend their post-trade offerings, ahead of the planned implementation of Target2-Securities (T2S) in 2015. T2S, which will centralize post-trade securities transactions against the Euro in a single platform, will see CSDs outsource their settlement function to the project, which will be operated by the European Central Bank. As a result, many CSDs are considering further developing their abilities to provide collateral management, asset servicing and similar areas. Migration to the T2S platform is currently planned in three waves, with Monte Titoli scheduled to be in the first.
The release comes at a time when Eurosystem CSDs are looking to diversify and extend their post-trade offerings, ahead of the planned implementation of Target2-Securities in 2015
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