Welcome to the fifth edition of Radar
In this edition of Radar we focus on two areas where the clock is ticking: TARGET2-Securities (T2S) and collateral management.
The first, TARGET2- Securities (T2S), is not simply of concern to settlement infrastructures inside the Eurozone. The ECB itself envisages a wider impact, as Jean-Michel Godeffroy, who has been driving the project at the ECB, tells us. Both the Swiss financial sector in general and SIX Securities Services in particular have long recognized the need to engage with T2S. In this issue we explore the practical steps they are taking and the benefits they expect to follow from this engagement.
The second theme of this edition is collateral management (including repo markets) in an age of regulatory reform. This has occupied gigabytes of conference proceedings since it became evident early in the crisis that regulators would be looking for further ways to mitigate systemic risk in the financial system. We explore the consequences from two angles: how the industry has been preparing, based on the results of recent surveys, and how the buy-side in particular is served by these preparations. While fears of a collateral crunch appear to have lessened over the past year, there are still many decisions to be made at an institutional level.