Nasdaq has announced that Nasdaq CSD is now the first European CSD to achieve full connectivity with all TARGET2-Securities (T2S) markets through Clearstream’s German CSD.
This integration offers Nasdaq CSD users access to a wide range of European markets for securities settlement and asset servicing.
Indars Aščuks, CEO of Nasdaq CSD, said: “Nasdaq CSD continues to lead in facilitating interconnectivity within European markets and connecting companies and investors in our region to the broader European financial system.”
Clearstream is the only CSD with connections to every market on the T2S platform. Through this interoperability, Nasdaq CSD will be able to extend Clearstream’s network to its users, enabling the settlement of trades both within and beyond T2S.
For Baltic investors, this means reduced transaction fees for foreign securities due to lower settlement costs. Nasdaq CSD users, predominantly banks, will benefit from the streamlined process for settling foreign securities, aligning it with local settlements.
Aščuks added: “This pioneering collaboration with Clearstream not only provides immediate benefits to both Baltic investors and Nasdaq CSD participants but also represents a significant step towards more integrated financial markets in Europe.”
Additionally, this newly established partnership allows firms listed outside the Baltics to easily access a growing Baltic investor base by dual listing on Nasdaq Baltic exchanges.
Samuel Riley, CEO of Clearstream Securities Services, said: “Clearstream and Nasdaq share the strong commitment to connecting markets globally. This co-operation has created a precedent for CSDs to explore the capabilities of Clearstream’s investor model and to demonstrate the interoperability of our ICSD and CSD services.”
Both Nasdaq and Clearstream are working to eliminate post-trade barriers in Europe, aiming to enhance cross-border efficiency and lower costs for investors and corporations.
Riley added: “The move allows Nasdaq CSD to offer its participants access to a trusted link network that fulfills the entire range of regulatory and compliance requirements surrounding CSDR whilst providing an efficient, flexible platform.”
The integration of the three Baltic CSDs and the Icelandic CSD into Nasdaq CSD has led to unified trading and settlement platforms, as well as standardised rulebooks, resulting in high-level integration among EU markets.
This progress supports the Capital Markets Union (CMU) objective of establishing a unified capital market where investments and savings can move freely across the EU.