BNY Mellon, an investment management and investment services firm, 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.
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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 stated that 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."
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By GlobalDataTim 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."
