BNP Paribas Securities Services, already servicing settlement and custody arrangements for four Italian banks ahead of the go-live of T2S (Target2-Securities) in the country, has added the Banca Popolare di Milano Group to its mandate. Banca Popolare includes three banks: Banca Popolare di Milano, Banca Popolare di Mantova and Banca Akros.
“Thanks to this agreement we will be able to settle cross-border transactions efficiently and effectively while making use of the high value added services of a specialist partner like BNP Paribas,” commented Giovanni Sordello, head of operations at Banca Popolare di Milano.
BNP is directly connected to the T2S platform, so is positioned to provide settlement and custody services on the platform. By using BNP’s connection to T2S, banks can avoid the adaptation costs of directly participating to the European single settlement platform themselves.
T2S finally went live on 22 June 2015 after years of planning and delayed implementation. It was supposed to go live in Italy on that date, but Italian banks were not sufficiently happy with the stability of the platform and the request by Monte Titoli, the Italian CSD, to delay the go live date for Italy until August, was approved by the European Central Bank, which is responsible for the project.
The CSDs of Greece, Switzerland, Malta and Romania all connected to T2S as planned, as part of Wave 1.
“We are delighted to work with the BPM Group and help them adapt to the rapidly changing market environment,” said Alessandro Gioffreda, head of BNP Paribas Securities Services for Italy, Switzerland and the Mediterranean Basin. "The BPM Group will be able to draw on the strength of a global bank as a single point of reference for all its settlement activity, enabling them to make the most of T2S.”