Clearstream and DekaBank have jointly developed a settlement solution supporting the domestic settlement of DekaBank’s cleared trading activity on Euronext, tpREPO and BrokerTec across the markets of Belgium, France and the Netherlands.
The model responds to an increasing market need for simplified cross-border settlement and contributes to current EU-wide efforts to harmonise practices across Europe’s previously unequal post-trade securities landscape.
Clearstream’s Settlement Agent Services aims to help banks improve their liquidity and collateral management by pooling liquidity in one place and increasing collateral management efficiency.
As part of it’s offering around TARGET2-Securities (T2S), Clearstream Banking Luxembourg will act as DekaBank’s settlement agent for fixed income and equities in the relevant local Central Securities Depositories (CSDs).
“We are delighted to have won DekaBank as a customer for our new cross-border settlement solution,” said Philip Brown, co-CEO of Clearstream Banking.
“This is an important step in the harmonisation of asset servicing across Europe, which enables market participants active in the Belgian, French and Dutch markets to benefit from improved and streamlined liquidity, collateral and risk management.”