Clearstream has reacted quickly to the decision by Euroclear to offer settlement of French equities through Euroclear Bank at domestic prices – a service the Brussels-based ICSD now plans to extend to UK, Belgian and Dutch equities as well, providing the agent banks of Europe with their first serious competition for cross-border equity business.
Clearstream announced today that it had from Monday this week implemented improved cross border settlement procedures between domestic and international markets in German securities.
The new service, offered by Clearstream Banking Luxembourg, provides a gateway for international investors to settle domestic German transactions free of and against payment through Clearstream’s German domestic real-time settlement processing system (RTS). The new service aims to streamline the processes between Clearstream’s ICSD platform (Creation) and its German Domestic CSD platform (CASCADE), and so deliver the following benefits:
1. Improved collateral management opportunities and additional possibilities to resolve fails
2. Additional same day back-to-back settlement opportunities
3. Enhanced input deadline for settlement instructions from 11:30 a.m. to 03:00 p.m. for both Free of Payment and Against Payment transactions
4. Increased opportunities for customers to settle same day transactions, including same day REPO transaction resulting from trading activity on the Eurex Repo platform
“With the successful launch of the cross-border RTS service, we are able to provide the inter-national community with a more efficient access to the German domestic market,” explains Matthias Ganz, Managing Director Operations and German Customers. “This is in line with our vision of a unified process for our customer base. The new service also helps to integrate Clearstream’s international and domestic offerings with the product base the Deutsche Brse Group by offering enhanced access to Eurex Repo and Eurex Bonds. It also provides a clear example of the benefits we are now delivering through the integrated services of the Group.”