The first and highly innovative partnership solution for TARGET2-Securities (T2S), involving Deutsche Bank, Euroclear and Northern Trust. The collaboration is based on a new operating model in securities services, where the traditional value chain is delivered by the integration of multiple parties – a global custodian, a central securities depository (CSD) and an asset servicing agent – into a single service offering.
It’s the first large-scale T2S mandate announced in the market and the model demonstrates how such component-based modular solutions can reshape the operation of post-trade service landscape of Europe.
In this first live operation of a multi-provider component solution, Northern Trust, as global custodian, performs settlement and provides central bank funding; Euroclear, as an issuer CSD, offers a single CSD Account structure in the French market as well as access to tri-party services; and Deutsche Bank offers local connectivity, asset servicing and end to end reconciliation.