MILAN (Reuters) - Italian banks will not join a new platform which unifies the settlement of securities across the euro zone when it launches on June 22 due to technical difficulties, the chairman of Italy’s broker association told Reuters.
In a landmark project, the European Central Bank (ECB) is launching this month the Target 2 Securities (T2S) platform which will settle euro-denominated securities, exchanging legal ownership for cash in the final part of a transaction.
Rejecting a request for a postponement by Italian banks, the T2S board decided at the end of May to stick to June 22 as the planned launch date.
Assiom-Forex Chairman Giuseppe Attana said the ECB Governing Council over the past few days had given a green light to Italy’s delayed entry.
“The T2S Steering Group will formalise the decision at a meeting in Frankfurt on Thursday,” Attana said.
“It’s most likely that Italy will join in on Aug. 31.”
The ECB declined to comment.
(Corrects headline to change length of delay to 10 weeks from 6 weeks)
Reporting by Luca Trogni, writing by Valentina Za