With the Provision dated 2 August 2018, published in the Gazzetta Ufficiale (Official Journal) No. 207 of 6 September 2018, the Bank of Italy, in agreement with Consob, recognized the equivalence of direct and indirect participants in the settlement service managed by Monte Titoli SpA via the T2S platform for the purposes of the application of Legislative Decree 210/2001 (Implementation of Directive 98/26/EC on settlement finality in payment and securities settlement systems). The provision was adopted pursuant to Article 10(4) of the above-mentioned legislative decree, which provides for the equivalence of indirect participants to direct participants in a securities settlement system 'if the characteristics of the system and risk-control needs so require'.
Under Article 1(o) of the above-mentioned legislative decree, the indirect participant is an entity, a central counterparty, a settlement agent, a clearing house or a system operator, that is recognized as a system operator, under the rules of that system and whose transfer orders are executed through the system by a named participant on the basis of a contractual relationship.
The equivalence measure will come into force fifteen days after publication in the Gazzetta Ufficiale.