18 May 2017
- Cecabank's 4th Securities Services Conference has established itself as the main Spanish post-trade forum.
- 190 institutions and industry representatives took part in the event
The Palacio de la Bolsa de Madrid was the stage chosen to hold a new edition of the Securities Services Conference.Organised by Cecabank, on this occasion the conference focused on analysing the entry of the Spanish financial system into Target 2 Securities (TS2). This new platform offers a comprehensive settlement service. It includes securities accounts and cash accounts. It is also another step forward in the integration of Eurosystem financial markets.
Target 2 Securities is one of the largest infrastructure projects implemented to date by the Eurosystem. The aim is to provide a single pan-European platform that facilitates the centralised monetary settlement of central bank money of securities transactions in euros or in other currencies.
Thus, banks, securities companies and investment fund managers, and pensions and venture capital managers had the chance to meet a few months after entry into TS2. It will come into effect on 18 September. It also comes before the completion of the reform of the Securities Clearing and Settlement Systems. More than 300 attendees analysed the impact these changes will have on the investment industry. They shared ideas on the challenges faced by pension funds in Spain. They also studied the impact of MiFID II regulations on investment funds.
T2S for a single securities market
T2S is a significant step towards achieving a single integrated securities market for financial services. It will enable European cross-border settlement of securities equal to that of national settlement in terms of efficiency and costs. It also complements and facilitates other European initiatives in the securities industry area. Examples are the Code of Conduct for the Clearing and Settlement of Securities. As well as the work carried out in pursuit of harmonisation within the Giovannini process and the Markets in Financial Instruments Directive (MiFID).
The opening ceremony was led by Cecabank's CEO, José María Méndez. He highlighted the consolidation of this event as one of the benchmark events on negotiation processes and the Spanish post-trade sector. He explained that the regulatory changes of recent years and the good data on the off-balance sheet retail market encourage this kind of event. Méndez recalled Cecabank's commitment four years ago to the separation between management and depositary functions. "A strategy that is gradually being confirmed in the regulation and that has allowed Cecabank to grow."
Ángel Benito, CNMV Board Member, also had his say. "In a few months, our market will be able to benefit from the advantages offered by settlement in a single pan-European platform, optimising collateralisation mechanisms or improved cross-border transaction settlement efficiency". Benito has stated that "the work undergone to date has enabled us to adapt our system to the European framework. The final effort will facilitate the successful integration of the Spanish market into T2S".
Digital transformation
Cecabank is currently undergoing a digital transformation of its Securities Services business.This is due to the objective of strengthening its value chain, profiting from the opportunities presented in the new environment. The head of the company's Operational Services Area, Javier Planelles, highlighted Cecabank as "a leading player in the custody and depositary activity of collective investment institutions and pension funds in Spain."
The general manager of Operations, Markets and Payment Systems at the Bank of Spain, Juan Ayuso, also gave his comments at the close of the event. "The adaptations for the migration of the Spanish community to T2-S are progressing satisfactorily, in accordance with the plan and schedule set out." Nonetheless, he asserted that “the deadline is very tight. It is fundamental that all parties concerned dedicate the resources necessary to ensure the process is successfully completed in September”.
Antonio Massanell, Chairman of Cecabank, brought the event to a close highlighting the future challenges that the Securities Services industry must address. He underlined that "the digital revolution and the inrush of new players and technologies, bring about the global transformation of our business. A change of paradigm which requires the presence of institutions, such as Cecabank, that bear the costs of adaptation, provide efficiency and accompany companies faced with these new challenges to the market".
With this event Cecabank establishes itself as the trusted partner to the banking sector and large corporates.As well as the promoter of the ecosystem that structures the Spanish post-trading industry.
