European Central Bank deal will help cut financial settlement costs across the European banking sector, promise the two partners.
Banking IT provider SIA and Colt Technology Services have won a tender from the European Central Bank to supply connectivity services allowing banks to connect directly to Eurosystem market infrastructures through a single access interface (the Eurosystem Single Market Infrastructure Gateway – ESMIG).
The ten-year connectivity contract deal supports European central and commercial banks, central depositories, automated clearing houses and other payment service providers too.
Using the connectivity, starting from November 2021, all the key organisations in the European financial system will be able to access ESMIG for the settlement of large-value payments through the TARGET2 system, the instant payments settlement service TIPS, the securities settlement platform TARGET2-Securities (T2S), the Eurosystem Collateral Management System (ECMS) and other systems.
ESMIG is a fundamental component in the implementation of the TARGET2 and TARGET2-Securities consolidation project, which was one of the key proposals of Eurosystem’s “2020 Vision” strategic plan for the evolution of market infrastructures. The connectivity project will deliver savings for both financial institutions, who require more secure and reliable functionality, and Eurosystem itself through a reduction in operating costs.
“The contract award was down to our high technological profile and strong international presence,” said the two partners.
Earlier this year, Colt Technology Services announced a significant expansion of its SDN (software-defined networking)-enabled On Demand portfolio, with the introduction of high bandwidth options available to enterprises and service providers over a wider network footprint.
The latest enhancements saw the introduction of 100G ports in critical data centres, end-to-end connections up to 20Gbps and the number of data centres where customers can benefit from real-time delivery increase to over 250 locations globally.