The Bank of England has raised serious doubts over whether it will join the European Central Bank's Target2-Securities (T2S) integrated settlement system.
The pan-European system would connect all clearing networks in the euro zone into a single platform, extending the payments system used for central bank operations to cover securities settlements.
The
ECB believes an integrated securities settlement infrastructure in the euro zone could cut settlement costs by up to 90%.
Although the UK is not in the euro, the
ECB has proposed that the settlement of sterling-denominated securities should also transfer from Euroclear UK & Ireland to T2S.
But in a letter to the
ECB executive board member Gertrude Tumpel-Gugerel, Bank of England executive director and chief cashier, Andrew Bailey, has raised concerns over the governance and cost involved in the project.
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