Greater flexibility and increased efficiency from Bridge improvements (Update 1)
Reference
The two ICSDs have reached agreement on the second phase of Bridge enhancements, with implementation planned in the forthcoming years.
The main benefits of phase 2 are:
- Further improvement to input deadlines
- Improved matching performance and quality
- Enhanced settlement performance with settlement files sent every ten minutes from 04:00. Settlement performance will be based on the current infrastructure with no change to the night-time processing timeline
- Shortened turnaround time (25 minutes average)
- Extended end-of -day settlement window of at least 30 minutes (potentially up to 1 hour).
For more information on this phase of the project, please read our Spotlights below.
Phase 1 of the Bridge enhancements was successfully implemented on 28 September 2015. The main goal of phase 1 is to bring the Bridge into a currency-driven model, meaning significant improvement to input deadlines, in particular for core currencies (EUR, GBP, USD).
Customers also benefit from:
- Additional matching and settlement files
- Settlement turnaround time after 12:00 CET reduced from 60-120 minutes to 35-90 minutes
- Move to mandatory settlement only (until end of day) for free of payment transactions
- Extension of interoperability between the ICSDs at the end of the day until 18.30 CET.
The two ICSDs have also committed to undertake a joint feasibility study into phase 3, with the aim to implement a real-time Bridge environment.
The study will commence after migration to TARGET2-Securities.
