BNY Mellon's CSD brushes up on T2S 20 May 2013London Reporter: Georgina Lavers
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BNY Mellon has signed a framework agreement with the Eurosystem to allow it to outsource settlement to the T2S settlement platform, which is set to go live in 2015.
The agreement commits Brussels-based BNY Mellon CSD SA/NV to taking all necessary steps to become a part of the T2S infrastructure and to comply with the T2S governance regime.
BNY Mellon CSD SA/NV will now work with the Eurosystem to implement the required IT infrastructure and connectivity to become a part of T2S.
Chris Prior-Willeard, CEO of BNY Mellon CSD SA/NV, said: “The creation of our CSD, and our commitment to the T2S project, demonstrates our ambition to support the aims and objectives of the new regulatory environment for financial markets in Europe, which we are confident will offer clear benefits to our clients.
In becoming a participant CSD in T2S, we will be able to enhance our clients’ experience; reduce risk by offering access to central bank money; and further enhance our ability to support our business activities across Europe.”
Tim Keaney, CEO of investment services at BNY Mellon, said: “As the leading provider in the Investment Services space globally, it is natural that we should be in the vanguard of our industry in participating in the ongoing evolution of the eurozone marketplace.
We are committed to occupying a position at the centre of the emerging European market infrastructure. T2S is a game changer for the industry, fundamentally altering how participants interact with the European market infrastructure. As a result, it will impact the business model of those participants, including CSDs, sub-custodians, global custodians and multi-direct clearers.”
Jean-Michel Godeffroy, chairman of the T2S board, said: “We are glad to welcome BNY Mellon CSD into the T2S Community. The fundamental objective of T2S is to contribute to making Europe a better place to invest. T2S is an open system that will allow all CSDs, whether established or newly-created, to find and exploit new business opportunities.”
Incorporated in Belgium as a non-bank subsidiary of The Bank of New York Mellon Corporation and regulated by the National Bank of Belgium, BNY Mellon CSD SA/NV will offer issuer, settlement and safekeeping services.
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