Clearstream has migrated the Belgian, Dutch, French and Italian markets onto its new Investor-CSD model to help banks access both
TARGET2-Securities (T2S) and its international CSD services.
For banks that carry out cross-border activities, the new Investor-CSD model will provide a single access point for all T2S markets in central bank money and its international central securities depository (ICSD).
“Our new operating model represents the first genuinely cross-border settlement service augmented with asset servicing functionalities,” said Philip Brown, co-CEO, Clearstream Banking.
“Key benefits include streamlined connectivity, harmonised asset servicing across CSD and ICSD accounts for all markets, partnerships with local agents to ensure best possible asset servicing for T2S-in markets and, critically, true collateral mobility and efficiency across T2S and ICSD markets.”
The new account will bring around 80% of the custody and settlement volume of T2S markets onto Clearstream’s Investor CSD services. Banks will be able to gain access to Clearstream’s full suite of international asset services for their T2S transactions.
“By engaging in partnerships such as this, we aim to demonstrate our commitment to providing the highest levels of client service and our technical capacity, while also continuing to develop our customised solutions,” said Alain Pochet, head of client delivery, BNP Paribas Securities Services.
Clearstream is the first CSD to roll out this new model, however, Euroclear are also planning to go live with a dual account structure allowing banks to move and allocate assets across T2S and their ICSD.