International central securities depository Euroclear, has announced that its long awaited real-time settlement platform will be launched on settlement date September 27, this year. The platform will enable real-time processing of trades and positioning of cash and securities, operations which are currently handled on an overnight basis.
Through this platform, Euroclear aims to serve as the hub for real-time access to bond and equity markets in the growing cross-border euro zone. The real-time settlement project has been delayed several times and, when it was finally ready for launch last year, Euroclear felt that it was too close to euro conversion. With the transition to the euro behind us and the Year 2000 project well on track, we are now in position to announce a firm launch date for the new real-time settlement platform," states Luc Bomans, managing director and general manager, Euroclear Operations Centre in Brussels. In the real-time environment, users will be able to manage their trades with greater flexibility and less risk, says Bunsdeen. "Real time will increase same-day turnaround capabilities with more local markets, facilitate same-day settlement of repo transactions between Euroclear participants, same-day fail repairs, and extended instruction input deadlines".
As the new platform will offer real-time settlement during the day, European time, participants located anywhere in the world will be able to access the new settlement environment during most of their business day. The electronic bridge which links Euroclear to Cedel, the other ICSD, will be unaffected by the move."