Monte Titoli in T2S

Monte Titoli in T2S

Monte Titoli has actively engaged with the ECB since 2006 in the promotion and development of T2S and was the first CSD to announce its intention to participate in the centralised platform back in January 2011. Monte Titoli has been investing in resources and IT development in order to add value for customers since the first migration Wave.

In the path through T2S, Monte Titoli pursues the goal of attaining a smooth transition in T2S, minimizing the impacts of change for clients. We are working to identify the most efficient ways to maintain and reuse, where possible, existing interfaces and communication protocols.

LSEG and Monte Titoli will therefore provide customers with:

  • benefits of early entry in T2S as the first major CSD to deliver T2S connectivity;
  • bespoke solutions and a flexible account structure model to perfectly suite you and your clients’ needs;
  • liquidity management solutions (cash forecasting, repo management and integrated tri-party collateral management); and
  • a low risk environment (AA rating from Thomas Murray since 2007): agent based service model and central bank money operations.

Monte Titoli strongly believes that we are uniquely positioned to build a strong institutional business partnership based on our:

  • strong focus on Post Trade services enhancement, through important investment in organic and inorganic growth
  • Monte Titoli’s position as a global securities services provider offering a single point of access for the management of securities, liquidity and collateral (Integrated Service Offering)
  • Innovative culture and approach to the new regulatory framework

Integrated Service Offering

T2S will ensure real-time DvP in central bank money and settle across borders by employing the so-called “integrated model”. Both cash and securities will be required to be integrated on one single IT platform and thus it will be necessary that:

  • CSDs outsource their securities account in T2S; and,
  • National Central Banks create specific Dedicated Cash Account (DCA) where users can exchange liquidity with the payment system (T2 for EUR).

Monte Titoli has committed to enhance and offer an integrated set of services to all Eurozone markets by the beginning of Wave1. The offer for those markets will include complete servicing for settlement, custody, asset servicing (inclusive of extensive income processing, corporate actions and fiscal services) and collateral management.
Broadly speaking, T2S will also offer:

  • Cash and securities account management
  • Multicurrency management, not only EUR
  • Transaction lifecycle management, from validation to settlement
  • Matching and related functionalities, such as the Hold/Release mechanism
  • Auto-collateralization, both ‘on stocks’, using securities already available on the accounts, and ‘on flows’, using the securities of the transaction to be settled
  • Information services



Monte Titoli's workstreams for T2S

The major streams will be focused on the following:

  • Expanding market coverage via direct links with the local CSDs. Monte Titoli currently offers services in 18 markets, which will be increased to 30 by mid-2015. These will include all T2S countries and the major international markets
  • Ensuring full connectivity for SWIFT ISO 15022 and ISO 20022
  • Proposing a complete set of Asset Servicing in STP
  • Enhancing collateral management services with a fully fledged tri-party collateral platform for on exchange, OTC and bilateral trades
  • Investing and strengthening the current resources to increase the number of people in operations, IT and customer services to manage the new services and challenges
  • Continuously improving efficiency, automation and STP processing
  • Competitive pricing