Link Up Markets chooses SWIFT to connect to CSDs

Initiative aims to drive standardisation in the securities space

Published on 19 September 2008
Left to right: Alain Raes, Chief Executive, EMEA, SWIFT. Tomas Kindler, Managing Director, Link Up Markets
 
Link Up Markets, the joint venture between seven central securities depositories (CSDs) to improve efficiency and reduce cost of processing cross-border securities transactions in Europe, has chosen SWIFT as its connectivity provider.

SWIFT will provide connectivity between the CSDs and Link Up Markets’ central infrastructure, which is designed to allow easy implementation of links between CSD markets.

Four of the seven CSDs in the joint venture have already committed to piloting their connectivity to Link Up Markets via SWIFT in the first half of 2009. These are Spain’s IBERCLEAR, Austria’s Oesterreichische Kontrollbank, Switzerland’s SIX SIS, and Denmark’s VP Securities Services.

The CSDs’ participation has been driven by the benefit of reusing their existing SWIFT infrastructure, which eases the connection to the new service and takes advantage of their existing investment in SWIFT. “Link Up Markets wants to provide a good service to the CSDs,” says Tomas Kindler, the joint venture’s Managing Director. “Many of them already have significant business with SWIFT, and the most cost and process efficient way for these CSDs to communicate with Link Up Markets is to leverage SWIFT for communications with Link-Up Markets.”

The number of CSDs using SWIFT to connect to Link Up Markets could grow soon. “One more CSD has indicated that it might migrate to SWIFT,” says Kindler. “We want to provide a choice for CSDs. They can now choose either SWIFT or private networks to communicate with Link Up Markets.”

Working with SWIFT is in line with Link Up Markets’ key aims, according to Kindler. “One of the goals of Link-Up Markets is to drive standardisation and harmonisation in the securities industry, and cooperating with SWIFT is one of the tangible elements of this goal,” he says.

Alain Raes, Chief Executive, Europe, Middle East and Africa, SWIFT, says Link Up Markets’ decision is also positive for SWIFT. “This is a major event for SWIFT – to be helping to reshape the securities industry in Europe,” he says.