Eight months after having announced their plans to develop a new asset servicing model for TARGET2-Securities (T2S), Clearstream and BNP Paribas Securities Services have completed the functional analysis of their collaboration and signed a partnership agreement.
Both companies are now well underway towards a timely T2S readiness and in a pioneer position when it comes to presenting a tangible asset servicing model for the market environment with T2S.
In this new model Clearstream will connect via its German central securities depository to the T2S platform, hence attracting settlement flows, while custodian bank partners will handle asset servicing at a domestic market level, bringing strong local market expertise to the model. BNP Paribas Securities Services will do the asset servicing for Belgian, French and Dutch markets. Clearstream will also progress with other agent bank partners to extend its market coverage.
Berthold Kracke, Head of Business Management and member of the Executive Board of Clearstream, commented: "We are delighted to confirm our partnership with BNP Paribas Securities Services for an asset servicing model that will combine Clearstream’s global settlement expertise with local market know-how. Once T2S has gone live, our customers will benefit from a one-stop shop solution that goes beyond settlement services. Banks decide on their T2S partners now – our proposal is on the table."
Alain Pochet, Head of Clearing and Custody at BNP Paribas Securities Services, commented: "Thanks to our T2S service model, Clearstream will enjoy our specialist asset servicing expertise at the local market level. Our T2S service models are ready, enabling our clients to reap the benefits of the platform ahead of deadline. These models go beyond the functional scope of T2S to include features such as liquidity and collateral management and can be customised to best suit our clients’ needs."