FERDINAND PEELEN, VERMEG
Episode show notes
With the introduction to ECMS in late-2023, it’s high time to consider whether you’re ready for the new, unified approach to managing collateral assets.
If you need to brush up on what to expect from these changes, and what you can do to best prepare, Ferdinand Peelen is here on FinTalk to break down the system, who’s affected, and how to be ready for its introduction.
Ferdinand talks us through VERMEG’s proud involvement in creating the ECMS system, and the tools we’ve created to assist firms looking for a solution to comply with the new regulations.
This episode of The VERMEG podcast covers:
- Implications of the ECMS implementation
- Who is potentially affected by the introduction of ECMS, and to what extent
- How VERMEG’s ‘EASY Collateral’ is built to tackle the regulation changes
- A timeline for where you should be on the path to adapting your systems
“It’s a Eurosystem Collateral Management System, which is basically a brand new unified system for managing assets, which will be used by all 19 Eurozone central banks from November 2023. ” – 1:50 – Ferdinand Peelen
“In its simplest form, any bank which runs a banking licence in the Eurozone is potentially affected. They are heavily affected if they regularly rely on National Central Bank funding within the Eurozone.” – 5:40 – Ferdinand Peelen
“I would say the challenges are obviously checking that all the industry standards and the market practices and that my ISO payment systems are correct. Then the question I’m asking myself is, what should that future state look like once my solution is implemented?” – 12:00 – Ferdinand Peelen
“We’re very proud to be mandated to make the ECMS system, to actually build the technology associated with that. So we have all the knowledge in house, and we’ve leveraged that by offering a digital app called EASY Collateral, which allows a client to see a dashboard, where they can see their total exposure to their NCB, and the available credit line based on their posted assets.” – 12:40 – Ferdinand Peelen
“If today, your ISO payment infrastructure isn’t in the right standard, we have an Exchanger that will translate non-ISO 20022 messages into ISO 20022 messages. So both for outgoing payments and incoming messages we can, as a quick fix, enable clients to be compliant with that correct payment standard.” – 17:10 – Ferdinand Peelen
“November 2023 will be a big bang. There’s no phased approach, like we’ve seen with some other infrastructure changes, everyone will migrate on the day. Testing will commence at the end of Q1 of 2023, which means people have now formed their project team. As a bank, you would either have already appointed a project team, or if not then this is the time to do that.” – 18:40 – Ferdinand Peelen
“All the conversations I’m having nowadays are in that phase of either doing the impact assessment, or they’ve just done it, and it’s planning for the delivery, budgeting, and things like that. Where we can help with EASY Collateral is preventing people from having to reinvent the wheel. Since we’ve made ECMS, it’s very turnkey.” – 20:35 – Ferdinand Peelen