Monte Titoli scrap T2S adaptation charges
Monte Titoli will not charge clients for getting ready for T2S, according to new general manager Mauro Dognini, speaking at a BNP Paribas Securities Services seminar.
Dognini revealed that the CSD had incurred €30m($37.8) in adaption costs for T2S.
“The decision to spend all this money and be an early mover is actually aimed at moving market share and increasing revenues,” said Dognini.
“T2S will bring a lot of changes. It will not happen tomorrow, but will move out of the monopoly situation we are in today. It will increase competition among CSDs and might also increase competition between custodians.”
The step will differentiate the CSD from Clearstream and Euroclear, the two largest European CSD groups, who intend to charge their users a maximum of €30m and €25m, respectively, as adaptation costs to T2S.
Monte Titoli will retain the same pricing for settlements throughout wave one and it may increase slightly in the second wave two. Custody fees will not go up.
Monte Titoli has taken a decisive pricing initiative, according to Alan Cameron, head of relationship management international banks and brokers. There are many good things about this, but it will depend on them taking market share to be sustainable.
“They have incurred €30m costs, so they will be hoping to increase settlements going through Monte Titoli, particularly from the Italian community. This remains to be seen,” said Cameron.
“Pricing is subject to change for wave two. I don’t think any of the CSDs can be confident about pricing because none of them know what’s going to happen.
"Looking at what has been indicated, you have to wonder if they can sustain it.”
Dognini also shared his plans in the next few years after T2S to develop some asset servicing capabilities. He said that the firm wanted to move from being an issuer CSD becoming more of an investor CSD.
Dognini revealed that the CSD had incurred €30m($37.8) in adaption costs for T2S.
“The decision to spend all this money and be an early mover is actually aimed at moving market share and increasing revenues,” said Dognini.
“T2S will bring a lot of changes. It will not happen tomorrow, but
The step will differentiate the CSD from Clearstream and Euroclear, the two largest European CSD groups, who intend to charge their users a maximum of €30m and €25m, respectively, as adaptation costs to T2S.
Monte Titoli will retain the same pricing for settlements throughout wave one and it may increase slightly in the second wave two. Custody fees will not go up.
Monte Titoli has taken a decisive pricing initiative, according to Alan Cameron, head of relationship management international banks and brokers. There are many good things about this, but it will depend on them taking market share to be sustainable.
“They have incurred €30m costs, so they will be hoping to increase settlements going through Monte Titoli, particularly from the Italian community. This remains to be seen,” said Cameron.
“Pricing is subject to change for wave two. I don’t think any of the CSDs can be confident about pricing because none of them know what’s going to happen.
"Looking at what has been indicated, you have to wonder if they can sustain it.”
Dognini also shared his plans in the next few years after T2S to develop some asset servicing capabilities. He said that the firm wanted to move from being an issuer CSD becoming more of an investor CSD.
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