SGSS reveals plans for direct connectivity under T2S

GlobalisationSociete Generale Securities Services (SGSS) will implement direct connectivity from the first wave of migration to Target-2 Securities (T2S) as of June next

year for the settlement of Italian and Swiss securities.

In a statement, SGSS says it expects to announce further direct connectivity links for the subsequent sets of markets that will migrate to T2S in four waves between June 2015 and February 2017.

Under T2S, participating central securities depositories will have a single platform to which they may outsource their securities settlement and position keeping.

A single set of harmonized operating rules and business processes is also intended to bring down barriers to cross-border post-trade activities in Europe.

T2S will, for example, provide real-time gross settlement in central bank money with the national central banks; this way, participants can reduce liquidity requirements through cash pooling and collateral mobilisation.

SGSS will act as payment bank in T2S, extending the geography of its current Euroclear settlement of Euronext-zone securities markets liquidity management services.

A new mechanism will also provide the option of distributing liquidity required for securities settlement in multiple markets through a single cash pool.

In addition, SSGS has signed a memorandum of understanding with bank-owned messaging network Swift to provide value-added network services to materialise the connectivity to T2S.

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