The man charged with overhauling the systems at the heart of the multibillion-pound European settlement market has outlined his IT strategy for the first time.
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David Wyatt, who is responsible for the creation of a single settlement engine to process customers' transactions at recently merged settlement house Euroclear, has talked to Computer Weekly about the challenge of managing one the most high-profile projects in the financial sector. It is estimated to be worth tens of millions of pounds.
Euroclear, formed by the merger last year of electronic settlement system CrestCo and Belgium-based clearing house Euroclear, claimed it will be able to reduce the cost of cross-border transactions by 90% by 2005. This will be underpinned by a single settlement engine - a project overseen by Wyatt.
Currently, firms trading on markets have to send payments to different settlement systems across Europe to settle deals. Using a single settlement platform would reduce risks and cut settlement costs for companies.
Financial firms could see IT savings from the Euroclear system through standardised procedures across the European markets, reducing the need for them to have different interfaces for different trading partners.
The new settlement system will handle more than 600,000 transactions a day across Europe, ranging from UK equities to euro bonds.