A system intended to unify collateral management systems for 20 Euro area national central banks has just gotten the green light from a key group within the European Central Bank (ECB). It is slated to go live by mid-June. The Governing Council of the ECB “has confirmed that the new Eurosystem Collateral Management System (ECMS)… Read More >>
E.U. Regulators Push the Accelerator for T+1
The European Securities and Markets Authority (ESMA), the European Commission (EC), and the European Central Bank (ECB) put out a joint statement this week indicating support for a coordinated T+1 transition with other jurisdictions in the region including the U.K. and Switzerland. Despite the complex E.U. post-trade landscape, the regulatory trio stressed the urgency of… Read More >>
Cboe Clear Europe & ABN Amro Test CBDC as Collateral
Cboe Clear Europe, a pan-European clearinghouse, and ABN Amro Clearing Bank N.V., report that they have been testing the use of a central bank digital currency (CBDC) as collateral, essentially exploring the potential of distributed ledger technology (DLT). In particular, they have been “testing the viability of the solution for margin calls outside the opening… Read More >>
T2S Migration Complete Amid Disappointments
TARGET2-Securities (T2S) has completed its final migration wave of central securities depositories (CSDs) with Iberclear Spain and its counterparts from Estonia, Latvia and Lithuania joining the fray. “Migration to T2S marks a major turning point in the evolution of the Spanish post-trade, after a years-long reform project which has been implemented in two stages,” says… Read More >>
Frankfurt Leads in Race to Be Next E.U. Financial Hub
As U.K. and European Union officials battle it out over Brexit financial settlements and border resolutions, Paris, Amsterdam, Dublin and Frankfurt are vying to be the city of choice for London-based financial institutions searching for a new European base. Competition is fierce but Germany’s largest city and financial capital, already home to the European Central… Read More >>
Two Failing Banks Get a Lifeline via Italian Government
Two days after the European Central Bank (ECB) warned that Banca Popolare di Vicenza and Veneto Banca were failing or likely to fail, the Italian government came to the rescue with a €5.2 billion ($5.8 billion) bailout package at the end of June. Under the deal, the good assets of the banks were sold to… Read More >>
ECB Expresses Worries over Blockchain/DLT
Although there have been several initiatives, the European Central Bank (ECB) still does not believe that blockchain/distributed ledger technology (DLT) is mature enough to be used for its Eurosystem market infrastructure for the near future. The Eurosystem is the monetary authority of the eurozone, consisting of the ECB and the national central banks of the… Read More >>
Referendum Spurs Turmoil for Italian Banking
Italian Prime Minister Matteo Renzi resigned on Monday, Dec. 5, after suffering a heavy defeat in a referendum on his flagship constitutional reforms. The result — 60 percent voting against to 40 percent voting for — has plunged the country into political turmoil and sent banking stocks to new lows. In particular, Italian banks, which… Read More >>
ECB Issues Warning Call About Blockchain
The sheer fact that the European Central Bank (ECB) is examining the use of the distributed ledger technology (DLT) for the Eurosystem’s market infrastructure has put blockchain firmly on the financial map. However, more work needs to be done to see whether this shared database — originally developed for cryptocurrency Bitcoin and used to secure… Read More >>
