T2S Gateway

Our X-TRM platform interacts with numerous other trading platforms and enables interoperability between central counterparties and settlement systems.

It's a pre-settlement platform with sophisticated features for the acquisition, acknowledgment, confirmation and forwarding of transactions from trading platforms or OTC trading to central counterparties and settlement systems.



Thanks to its data enrichment functions, X-TRM allows complete automation of the entire post-trade process from negotiation to contract execution. With its interposing and position netting capabilities, X-TRM offers central counterparties a set of complex tools for effective risk management.



X-TRM manages a wide range of post trading activities including settlement instruction management, enrichment through the automatic valorisation of settlement fields, interposition of the central counterparty, calculation of net balances, routing of settlement instructions management of corporate actions on failing transactions and operational reporting.

Our Clients can take advantage of T2S, the platform managed by the ECB, and all its functionalities, with harmonized settlement procedures in all participating countries.



T2S guarantees real-time DvP settlement in Central Bank money through the use of an "integrated model": both cash liquidity and securities are managed through a single IT platform, therefore the National Central Banks define specific cash accounts (DCA - Dedicated Cash Account) in which users can exchange liquidity with the T2 payment system (for EUR currency).



Clients can access T2S directly (DCP mode) or indirectly (ICP mode).



The settlement service offers all the functionalities of the T2S platform to both DCP and the ICP, in particular:

•     Liquidity management and securities accounts
•     Management of the life cycle of transactions, from validation to settlement
•     Matching and related features, such as the Hold / Release mechanism
•     Auto-collateralisation, both 'on stocks' and 'on flows'
•     Information services

In addition to settlement activities, we offer a wide range of services that guarantee intermediaries the complete, correct and efficient functioning of the administration of financial instruments, both Italian and foreign, centralized in Euronext Securities Milan, belonging to the following categories:

• government bonds
• corporate bonds (including asset backed securities)
• shares
• warrants / covered warrants
• mutual funds (closed-end funds, real estate funds and ETFs)

Euronext Securities Milan offers a direct relationship with the issuing companies of financial instruments under Italian law.  We also support intermediaries with the main foreign custody systems for foreign instruments and can receive all corporate actions information directly from the official source (the issuer CSD) (the issuers or the related CSD) and forward it promptly, with the same level of detail, to clients.

We can manage any type of corporate actions in compliance with international standards:

• dividend payments (equities), income (funds) and interests (bonds and ABS)
• voluntary corporate actions (e.g. capital increases, warrant exercises)
• mandatory corporate actions (e.g. mergers, demergers, free share assignments, free capital increases)

For transactions involving the management of payments of dividends, proceeds, interest and payable capital transactions, the issuer elects a paying agent to whom the related instructions for the payment of payments will be sent automatically; when payments are released by the Issuer CSD of another country, Euronext Securities Milan receives the funds and credit them to its clients with the same value date whether it is Euro or another currency.



The corporate actions management service offers our clients the following advantages:

• receiving information on corporate actions, including those necessary for voting in meetings;
• automatic collection of fees accrued on centralized financial instruments both in Euro and other currencies;
• complete information on payments, both forecasting and settlement of proceeds;
• participation to voluntary and mandatory corporate actions in Euro and other currencies
• FIS & CPA service for reporting shareholder names
• RCC service for the calculation and settlement of fees due by issuers to intermediaries for the forwarding of shareholder data

Custody

Our Custody service is the only authorized Italian central depository for financial instruments.



Any type of non-derivative financial instrument, Italian or foreign, can be admitted to the Euronext Securities Milan Custody system and settled by accounting entries without any physical movement of financial instruments, with high safety and efficiency standards.



Almost all of the centralized financial instruments are managed in a dematerialized form; the financial instruments still represented in paper form are grouped into large denomination certificates (global certificates or maxi certificates).



Italian and foreign operators, both intermediaries and issuers can access the Custody Service as well as clearing and settlement institutions (CCPs and CSDs).

Issuer reporting

The FIS & CPA services provide notification for registered shareholders, from intermediaries to issuers, related to: participation in the General Meeting (CPA), dividend payment and right issue (FIS), aimed at updating the shareholders register.

The services offered are as follows:

• Notification sent by the intermediaries is automatically checked and matched, before being made available for the intended issuers, with creation of a log file detailing the result
• Notifications that are formally correct are automatically processed and made available to the issuers
• Notifications containing formal mistakes are registered in standby status and may be corrected or forwarded to the issuers, at intermediaries' discretion
• On-line alerts are automatically created, for intermediaries and issuers, in order to keep track of the deadlines to be respected for sending the files (intermediaries) and for receiving them (issuers)
• The services offered also allow the intermediaries to send partial notifications and to send notifications on behalf of downstream correspondents
• Notifications sent via CPA & FIS services are automatically registered in RCC service, allowing intermediaries to receive the fees that are to be paid by the issuers

Client fees settlement service

Client fees settlement service (RCC) allows settlement of fees that are to be paid by issuers to intermediaries, in connection with the notifications of the shareholders details for each corporate action, in the securities account of the final investors.

The service is offered in both interactive mode (via MT-X platform) and non-interactive mode (only calculation and payment of the fees).

Interactive mode provides the full range of facilities, including:

• Calculation of the fees to be settled
• Access to detailed payment reports
• On-line storage of all paid reports
• Modification of the fees drivers and of the amounts to be paid (only for issuers)
• A tool for issuing and receiving invoices related to fees (applicable only for fees coming from notifications referring to General Meetings)
• The fees are automatically settled, at the expected deadlines, in the BI-COMP system (Banca d’Italia cash settlement system)

Euronext Securities Milan may act on behalf of non-resident Intermediaries who are qualified as second level banks in accordance with the procedure set out in Article 7 of Legislative Decree No. 239/1996 and D.M. 632/1996. To this end, intermediaries will have to send the official communication to the Revenue Agency (form 118 / IMP), with which the intermediary declares the 2nd level Bank status and indicates Euronext Securities Milan as the tax representative in Italy, for bonds portfolio.