MARKET INFRASTRUCTURE

Czech CSD opens direct settlement account with Euroclear

Euroclear have established direct settlement links with local CSDs in Central and Eastern Europe since 2008.

By Joe Parsons joe.parsons@strategic-i.com December 05, 2017 11:50 AM GMT

The central securities depository (CSD) of the Czech Republic, CSD Prague, has opened a direct settlement account with Euroclear Bank.

The link with Euroclear will allow CSD Prague to offer a wider range of services, such as corporate actions, and have access to many additional foreign markets.

“This relationship with Euroclear will provide us with a safe and efficient settlement link permitting us to use all services related to corporate events and the potential to further develop services related to foreign securities,” said Helena Cacka, CEO, CSD Prague.

Euroclear established its direct settlement model with local CSDs in Central and Eastern Europe in 2008. This model initially applied to Czech Republic, Hungary, Poland, Slovakia and Slovenia, and two years later, extended to Romania and Israel.

Meanwhile the Prague Stock Exchange (PSE) and CSD Prague are currently developing its clearing house for on-exchange trades.

“Capital markets are facing multiple challenges in the field of legislation, technology and innovation in general. Euroclear is a leading company which explores new technology solutions and implements them together with its participants,” added Petr Koblic, CEO of PSE and chairman of CSD Prague.