27 November 2015

Chris Pickles

Chris Pickles - Consultant

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A post relating to this item from Finextra:

Swift wins T2S connectivity deal with CSD consortium

24 October 2012  |  6310 views  |  1
Link Up Markets, a consortium of 11 European central securities depositories (CSDs), has selected financial messaging network Swift to provide connectivity to Target2-Securities, the new pan-European...

How many ways to connect to T2S?

24 October 2012  |  2658 views  |  1

If I remember correctly, the ECB said that major market participants had asked for a third option for connecting to T2S - linking directly into the ECB's core network.  Taking that major market participants probably account for 80% of volume, that would leave around 20% of all T2S messages being divided between all of the remaining market participants and the other two methods of accessing T2S.

One of the beauties of open industry standards like ISO 20022 is that messages developed from that standard can run over any network, including even the public Internet.  Open standards also make it much easier and less costly for firms to link directly into service providers rather than having to go through messaging hubs.  Going via a messaging hub tends to be more cost-effective for organisations that have very low volumes of messages.  The approach that the CSD consortium is taking in this case would appear to be a reflection of the volume of messages that they expect to route through to T2S.

TagsTrade executionPost-trade & ops

Comments: (1)

A Finextra member | 24 October, 2012, 19:01

It looks to me Chris that the CSDs will be all using SWIFT to fit their existing set up with everybody else in a position to chose network and as you say ISO20022 provides this capability. It will still mean that T2S benefits can only be realised if Custodians presumably have to translate/integrate ISO20022 messages with their CSDs T2S connection.Fom the investing and broking community aspect i cant see that they will be at a dissadvantage 

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job title Consultant
location England
member since 2009
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I help organisations that work in the financial sector around the world to understand better how the sector works, how regulations impact the business operations of financial institutions, and how to...

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