Clearstream, the international central securities depository, has added Brazil to its cross-border settlement network, the first ICSD to do so. The settlement link to Brazil is now fully operational.
The launch of the service on January 21 apparently beats rival ICSD Euroclear, which has said its service in Brazil will be operational starting January 31, to the market by just 10 days.
The company now offers settlement and custody services for all asset classes denominated in Brazilian Real. The link gives Clearstream customers the opportunity to develop post-trade solutions for the Brazilian market using Clearstream as their single point of access. Ita Unibanco is Clearstream’s local partner and will act as sub-custodian.
“The settlement link to Brazil is key in light of our BRIC strategy and an important additional element to our presence in Brazil where we have already developed a collateral management solution for the local market, says Mark Gem, member of the executive board and head of network management at Clearstream. We are pleased to be the first European market infrastructure provider to launch a post-trade service for Brazil with Ita Unibanco as local partner who best knows the requirements of this very large and segregated market.”
Ricardo Lima Soares, director of the capital markets solutions group at Ita Unibanco, adds: “We are very pleased to support the leading European post-trade services provider Clearstream to further enhance its presence in Brazil. The new settlement link will allow the large international investor base to more easily access the Brazilian market. We believe that our in-depth knowledge of the Brazilian and South American financial markets assures that Clearstream clients will be provided the best possible service on site.”