23 January 2018
visit http://response.ncr.com

Banking heads 'hugely disappointed' by T2S delay

21 September 2011  |  9631 views  |  0 Sibos show - 2005

Leading banks have expressed their disappointment at yesterday's news that Target 2 Securities (T2S), the European Central Bank's plan to streamline Europe's securities settlement structure, has been delayed yet again.

"I was hugely disappointed by the announcement that T2S will be delayed," said Tim Keaney, chief executive of asset servicing at BNY Mellon, the world's largest custody bank. "As a global custodian, one of the challenges we face is explaining to our customers why international custody is so much more expensive in Europe, so I was very encouraged by the launch of the T2S initiative and the idea of introducing a harmonised settlement structure in Europe."

Keaney was speaking at a panel debate at the annual congress of financial messaging body Swift and his dissatisfaction was shared by his fellow panelists. "What I find concerning is the business changes involved with T2S are so colossal," said Paul Simpson, head of global transaction banking services, Bank of America Merrill Lynch. He suggested that the industry should work together on more executable stages rather than one all-inclusive deadline.

The original deadline was set for September 2014 but the delay announced yesterday could push this date back to 2015.

It was also stated that the T2S platform itself only addresses one part of the problem and will be ineffective without further harmonisation throughout the underlying environment.

"You cannot just take a block of countries and say you all need to have the same thing unless everything else is equal - such as tax," said John Coverdale, Group General Manager, head of global transaction banking, HSBC. "So there is a lot that needs to happen but the industry needs to be more positive and stop bickering over the details because standardisation itself is a good thing and a good way to reduce risk and increase efficiency."

Custodian and transaction banks such as BNY Mellon, HSBC and BoAML are one of the sectors that could benefit from the reduced settlement costs that T2S is promising, hence the frustration with the delay. Although it is likely that they will also face competition from central securities depositaries (CSDs) that could earmark the custody space as a way to compensate for any transaction-based revenue lost as a result of the introduction of T2S.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ECB calls on recalcitrant CSDs to take efficient approach to T2S integration

ECB calls on recalcitrant CSDs to take efficient approach to T2S integration

21 September 2011  |  9175 views  |  0 comments
T2S winning wider industry acceptance

T2S winning wider industry acceptance

27 October 2010  |  11060 views  |  0 comments
ECB issues price plan and revised timetable for T2S

ECB issues price plan and revised timetable for T2S

25 October 2010  |  10425 views  |  1 comments
ECB confirms delay to T2S

ECB confirms delay to T2S

14 April 2010  |  13964 views  |  0 comments
T2S spat turns up the heat at Sibos

T2S spat turns up the heat at Sibos

15 September 2009  |  10219 views  |  1 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.niceactimize.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Banks shift priorities toward growth, digitisation and innovation - surveyBanks shift priorities toward growth, digi...
8962 views comments | 37 tweets | 46 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
8960 views comments | 14 tweets | 14 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
8858 views comments | 12 tweets | 12 linkedin
Sbanken opens developer portal and invites customers to build their own digital bankSbanken opens developer portal and invites...
8010 views comments | 16 tweets | 11 linkedin

Featured job

New York, NY - USA (some flexibility on location)

Find your next job