Deutsche Brse Group, will be the first ICSD to open a full Delivery Versus Payment (DvP) link to Iceland for bonds and equities plus a full range of asset servicing with cash accounts at the central bank and securities accounts at the Central Securities Depository (CSD).
Agreements forged with the Icelandic Central Bank and the countrys CSD mean that Clearstream has built the safest possible access to hold Icelandic securities via a Delivery versus Payment (DvP- or against payment) link enabling irrevocable delivery of securities with the guarantee of payment by the counterparty. Previously Clearstream had an indirect free of payment link via Danske Bank ie enabling irrevocable delivery of securities but without the guarantee of payment by the counterparty.
At the time of the financial crisis most financial institutions lost confidence in the Icelandic system but Clearstream worked hard and quickly to strengthen its existing links with Iceland, says Mark Gem, a member of Clearstreams executive board. Today, Clearstream is delighted to help bring back stability to Iceland by first securing the cash link with the central bank and then later by upgrading our service range while ensuring the best possible risk-free environment for our customers.
With this addition, Clearstreams network now reaches 46 domestic markets around the globe: 29 in Europe, 5 in the Americas, 12 in the Asia Pacific region and in South Africa, Australia and New Zealand. It is the widest network of any international central securities depository (ICSD) and enables counterparties in local markets to efficiently settle eligible securities through Clearstreams operational hub in Luxembourg.
D.C.