BNP Paribas goes with Swift for T2S link
BNP Paribas Securities Services is to use Swift’s value added network service to connect to T2S, the single European settlement platform due to roll out in 2015-16.
T2S was originally intended by the European Central Bank to create efficiencies in settlement, as a counterpart to the introduction of the euro. T2S aims to make post-trade processes easier by offering neutral, harmonised and commoditised delivery versus payment settlement in central bank funds across all European securities.
Swift holds a connectivity licence for T2S, and will build the network that will link CSDs with the ECB and charge fees to users.Swift’s tools allow customers to connect to T2S in the ISO 20022 messaging format.
BNP Paribas says it chose Swift based on its ability to provide a reliable infrastructure, its existing relationship with Swift, and Swift’s pricing structure for T2S.
“As a major securities services provider, we will connect directly to T2S to reap its benefits and pass them on to our clients,” said Alain Pochet, head of clearing, custody and corporate trust services at BNP Paribas Securities Services. “We will therefore build our services for the T2S environment on the strongest foundations. We are confident that SWIFT’s T2S connectivity solution is the best choice for us and our customers, bringing unmatched benefits in terms of resilience, reliability and cost.”
The T2S project experienced several delays at the start of this year, partly due to the number of change requests submitted by the CSDs as part of the process. It is currently expected that migration to T2S will take place in 2015, with final implementation during 2016.