Clearstream opens new link to Serbian capital market

Connection aims to attract cross-border investments and improve liquidity in the Serbian capital market.

By Jonathan Watkins

Clearstream has connected the Serbian capital market to its global network, marking the 59th market linked to the international central securities depository (ICSD).  

The connection makes Clearstream the first ICSD to offer international investors access to the Serbian capital market by enabling settlement of Serbian government bonds denominated in Serbian Dinar (RSD).

The linkage comes following the recent inclusion of Serbia’s dinar-denominated bonds in a series of major local-currency emerging markets indices. These included JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM) and Government Bond Index-Aggregate (GBI-AGG).

The link with Clearstream, meanwhile, aims to attract cross-border investments and thereby improve liquidity in the domestic capital market.

Raiffeisen Bank International will act as local custodian and operator of Clearstream’s account at the Serbian central securities depository (CSD).

“This cross-border link creates various new investment and financing opportunities for the domestic market, underpinning our commitment to connect capital markets all over the world,” said Jan Willems, head of global markets at Clearstream. 

Some of Clearstream’s more recent market links have included Saudi Arabia, Romania and Ukraine over the past two years.