SWIFT has been awarded a licence by the European Central Bank (ECB) to provide connectivity services to TARGET2-Securities (T2S). The announcement follows a competitive tendering process run by the Banca d Italia on behalf of the Central Banks of the Eurosystem.
T2S is the single European settlement platform designed to integrate the post-trade infrastructure in the Eurosystem. After some delays, it is tentatively set to go live in 2015.
As a future network service provider for T2S, SWIFT will design, implement, deliver and operate its own connectivity solution for the secure exchange of business information, in ISO20022 format, between directly connected T2S participants and the T2S platform.
The SWIFT licence is one of two being awarded to specialist providers of connectivity services. The other licence was jointly granted to SIA, a European banking and financial services provider operating the SIAnet network infrastructure, and Colt, the information delivery platform providing connectivity to a number of European stock exchanges, to design, create and manage the network infrastructure for T2S.
The system to be developed by SIA and Colt will connect central securities depositories, central banks and European banking groups to the T2S platform.
The two awardees will be invited by the ECB to sign a licence agreement, expected later this month. Once they become network service providers, they will begin implementation of a proof of concept (POC) of their T2S connectivity solutions during the first half of 2012.
Alain Raes, chief executive, EMEA, SWIFT, said in a statement: " We are delighted to have been selected as a Network Service Provider for T2S. This decision reflects our competitive pricing and our position as the de facto provider for connectivity and interoperability services in the European clearing and settlement market. "
Reporting by: Janet Du Chenne, Global Custodian, an Asset International publication