VERMEG, a specialized software house covering three main market segments in financial services – Banking, Wealth and Asset Management and Insurance, announces a new software solution, ‘EASY Collateral by VERMEG’ to enable European Banks to be ready for connection and operation with the new ECMS, which launches in November 2023.
Designed to replace the current fragmented and decentralized structure operated by 19 central banks, ECMS is a unified system for managing assets used as collateral in Eurosystem credit operations. Building on the previous success of Target2 (T2) and Target2-Securities (T2S), it aims to deliver market harmonization by ensuring that cash, securities and collateral flow freely across Europe.
As many banks rely on legacy systems, many of them will need to undertake significant software upgrades or modifications to ensure they can connect into the new ECMS.
„VERMEG’s new modular software solution ‘EASY Collateral by VERMEG’ enables banks to do exactly that. Comprising multiple components, such as Corporate Actions, Credit claims and new ISO 20022 messaging, banks can use the whole solution or pick up only the components that they need, depending on their requirements,” the company explains.
Migration to ECMS will be an immediate switch over in November 2023, so European banks are responsible for ensuring their systems comply, and the appropriate internal and user testing has been carried out in advance of the go live date, and in accordance with the migration calendar imposed by the European Central Bank to all counterparties.
Khaled Ben Abdeljelil, Senior VP/ Product, VERMEG comments: “With two years to go until the ECMS goes live, banks need to urgently review their internal IT systems and start making the necessary upgrades and modifications to ensure they’re compatible.”
“Our new software ‘EASY Collateral by VERMEG’ gives European banks the flexibility of a customized solution to upgrade their internal systems, with decision making support available once ECMS is live, to help them optimize their collateral management.”
“As VERMEG was responsible for developing the software that underpins the new ECMS platform, combined with our expertise in collateral management and over 15 years experience working with key European central banks, we’re not only a trusted technology partner, but also perfectly positioned to help European banks prepare their systems, and then support them on collateral allocation ongoing.”
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VERMEG has over 1 700 employees and supports more than 550 clients in 40 countries.
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