Successful T2S transition for BNP Paribas in Italy

BNP Paribas Securities Services became a directly connected participant in T2S (TARGET2-Securities) upon the launch of the harmonised European settlement platform in Italy on 31 August. Since then, the bank has successfully migrated over 60,000 positions onto the platform and settled nearly 500,000 transactions on it.

T2S is the European Central Bank’s flagship settlement programme, designed to harmonise settlement processes across the continent. Wave 1 went live with four CSDs (central securities depositories) on 22 June. Italy had to delay its own connection to T2S until 31 August, owing to technical concerns from Italian banks that needed resolving.

“The migration was a massive undertaking involving teams in Milan, Paris and Lisbon whose round-the-clock dedication to client service made the move as smooth as possible for clients,” says James Woods, head of client development for banks and brokers, BNP Paribas Securities Services Italy. “BNP Paribas Securities Services is in an ideal position to help domestic Italian banks and international players optimise their post-trade business across all of Europe with a single provider.”

Monte Titoli, the Italian CSD, went live on this later date. BNP Paribas provides T2S functionality to four Italian banks; Banco di Credito Popolare, Banca Popolare dell’Alto Adige, Banca Popolare di Vicenza and Veneto Banca.

BNP Paribas has announced several major mandates this year directly as a result of the move to T2S. BNP Paribas will provide these banks with a single point of contact for settling both their domestic and cross border transactions and access to banking services such as liquidity management.

“By connecting to T2S via a local custodian such as BNP Paribas, banks can take advantage of new efficiencies created by the platform across Europe, while saving on implementation costs,” adds Philippe Ruault, head of solutions for custody, clearing and settlement, BNP Paribas Securities Services. “They also benefit from specialised local asset servicing in each market, including corporate actions processing and income collection, which varies across locations and requires local expertise.”

Tags: T2SMonte TitoliBNP ParibasCSDSettlementEuropeECB