Faster, cheaper, safer settlement of large-scale transactions is being introduced at the Amsterdam Exchanges NV. The Trade-For-Trade facility (TFT) has been made possible through the creation of Necicom, an ultra modern communications infrastructure between those dealing in the market and the central settlement organisation Necigef. TFT is especially designed for major foreign securities houses who want to become remote members.
TFT allows dealers to settle transactions traded on the Stock Exchange and over the counter where the delivery of the securities is linked to payment. It has been developed for wholesale transactions in particular. For example, transactions on the Amsterdam Treasury Bond Market (ATM), but also via TSA, can be sent direct to Necigef in the form of settlement instructions.
One consequence of the TFT system is that settlement in hard cash is conducted in Dutch guilders through De Nederiandsche Bank (the Dutch Central Bank), while payments in foreign currencies are made through Kas Associatie, the Stock Exchange bank. Where dealers are not affiliated to Necigef they can use their own bank to settle their securities and payments via De Nederlandsche Bank.
The facility is a key element of the Amsterdam Securities Depository (ASD) which is expected to be in place by the second half of 1996. Other services it will offer include: the giro transfer of securities, the custody of securities, linking to international clearing and settlement institutions, such as Euroclear and Cedel, and various administrative tasks.
For further information on the Amsterdam Exchanges NV, please contact; Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Buersplein 5, 1012 JW Amsterdam, Netherlands, Tel: +31 20 523 4014, Fax: +31 20 523 4950, or enter text search 'Amsterdam Exchanges NV' and 'Business Monitor'.
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23 February 1996