Clearstream is extending its end-of day deadlines for the settlement securities and cash across all American markets in April 2014.
The move will improve cash and securities deadlines for internal settlement activity of its ICSD as well as for domestic settlement with local counterparties in the U.S., Canada and Latin American markets such as Argentina, Brazil, Mexico, Uruguay and Peru.
Further, it also enhances its customers’ access to the highly liquid U.S. market as well as the AAA-rated Canadian market through the ICSD’s Global Liquidity Hub.
In a first step, from April 2014, it will be possible to settle internal and domestic US transactions via Clearstream until 20:00 CET (14:00 EST), an extension of two hours compared to the current cut-off time of 18:00 CET (12:00 EST). The US Dollar cash deadline will also be extended to 20:00 CET (14:00 EST), allowing cash management closer to local market deadlines.
In a second step, in 2015, the deadlines will be pushed back by another 1.5 hours, extending settlement to 21:30 CET (15:30 EST). In a final step, Clearstream aims to offer settlement throughout the entire US business day in 2016. As it progresses towards its goal to achieve full coverage of the US business day, Clearstream will also offer improved cash and securities settlement deadlines on all North and Latin American links.
Jeffrey Tessler, CEO of Clearstream, says: “This extension of both internal ICSD settlement times and securities and cash deadlines offer significant new flexibility for our customers and the markets we serve. They represent a first step in a planned series of reviews into the American operating day that will ultimately, by 2016, cover the full business day EST. From a collateral management perspective, it greatly enhances our customers access to the highly liquid US market as well as the AAA-rated Canadian market through our Global Liquidity Hub.”
Clearstream Extends Settlement Deadlines Across U.S. Markets
The extension enhances its customers’ access to the U.S. market as well as the AAA-rated Canadian market through the ICSD's Global Liquidity Hub.
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