Clearstream goes live with T2S securities lending scheme

The service will allow clients to borrow or loan securities from a single pool of across its ICSD and CSD.
By Joe Parsons

Clearstream has recently launched a new securities lending solution aimed at enhancing its Target2 Securities (T2S) offering.

Its new ASL principal service will enable clients to borrow or lend from a single pool of securities regardless of their settlement or custody location.

The ASL principal combines its existing Automated Securities Lending service with the principal structure of Clearstream Banking as a sole counterparty.

Clearstream says the new solution will “enable customers to benefit from opportunities for the pooling of CSD and ICSD liquidity across asset classes”.

It also says the new service will minimise customer exposure to the upcoming CSDR mandatory buy-ins in the case of settlement failures.

The launch of the solution is part of Clearstream’s rollout of an enhanced T2S service, which include its new investor-CSD account, providing direct access to T2S and Eurobonds markets in central bank money from a single account.

Clearstream’s focus on T2S has begun to pay off following the go-live of wave 4 in February for the Luxembourg and German markets.

In the second quarter revenue for its domestic CSD increased 23% to €33.7 million following the introduction of a new T2S fee structure.