Clearstream successfully launched, on 10 March, its new generation ofpost-trade infrastructure processing environment, delivering real-timetransaction processing across the full instruction life cycle throughoutthe daytime settlement period.
With the new generation environment, Clearstream now treats all the stepsof the transaction life cycle which impact the efficiency of the market on a real-time basis. The scope of services benefiting from the change includes not only settlement itself, but also instruction validation, matching, domestic market instruction handling and feedback, instruction sequencing, provisioning, collateral allocation and substitution and customer reporting.
The new generation provides customers with an environment in which tooptimize securities movements and collateral throughout the daytimeprocessing period from 4:30 to 18:00 CET. Customers benefit from an accelerated settlement processing without queuing times, and a reduced need for credit and collateral.
The real-time settlement includes cash netting, securities netting and securities financing supporting the market in meeting the demands of the fast-expanding lending and repo market.
Settlement deadlines have been improved for securities in 36 domesticmarkets worldwide. As there are two or three different deadlines per market, overall 98 deadlines have been improved. Cash instruction deadlines have also been improved for 26 currencies including the euro deadline via TARGET2 and corporate action processing in domestic markets has been upgraded.
Customers will have no migration cost and no change of communicationinterface as the system runs on Clearstreams Creation Settlement engine. With instruction management information immediately available across multiple communication channels, they will be able to monitor pre-settlement transactions and take action to ensure timely settlement.The new generation significantly improves the service levels for allsecurities processed.
“The unique feature of Cleartsreams new offering is that it brings the benefits of real-time processing to all aspects of the transaction life cycle. The successful launch of the latest generation of Creation demonstrates Clearstreams commitment to interoperability and to raising the level of market efficiency,” says Jeffrey Tessler, CEO, Clearstream.