MARKET INFRASTRUCTURE

Clearstream to launch settlement offering for German debt

The launch of Clearstream’s new settlement offering follows LCH’s extension of its RepoClear service.

By Paul Walsh paul.walsh@strategic-i.com April 11, 2017 3:05 PM GMT

Clearstream is set to launch a new settlement offering for German debt allowing its member firms to clear Bunds and German repos through LCH SA.

The announcement follows LCH’s decision earlier this month to extend its RepoClear service to offer clearing for cash and repo trades on German government securities via its continental Europe-based entity LCH SA.  

Partnering with the central counterparty, Clearstream's customers can settle German debt their Banking Luxembourg (CBL) account  or Clearstream Banking Frankfurt (CBF). 

The transactions can be settled either in central bank money via CBF or in commercial bank money via CBL.

The new offering will also ensure customers can further utilise the TARGET2-Securities (T2S) market environment by allowing customers to settle their German government securities in CBF as a German CSD. Clearstream rolled out its T2S offering in February this year as part of wave four of the initiative.

The German debt launch will also carry benefits for securities lending and collateral management, according to the CSD.

The settlement launch is set to go live in the "coming weeks".