Nasdaq’s central securities depository (CSD) for the Baltic markets has gone live with a direct link with Clearstream in Germany.
The new connection aims to facilitate cross-border settlement in TARGET2 Securities (T2S) markets, giving foreign investors easier access to listed Baltic securities.
“The direct link is an important addition to the Baltic market’s cross-border settlement infrastructure, facilitating access in rapidly expanding markets in response to customer demand. It will provide foreign investors easier access to the Baltic region, securing a more robust channel to settle cross-border securities transactions,” said Indars Ascuks, CEO, Nasdaq CSD.
“We look forward to operating with maximum energy to bring further efficiency gains for the region, powered by modern straight-through processing technology, connectivity to T2S and a direct link to Clearstream.”
Nasdaq merged its three CSDs across Estonia, Lithuania and Latvia into a single market infrastructure two years ago, after joining the pan-European settlement platform.
Clearstream users will be able to leverage the direct link as a single access point to securities issued in Nasdaq CSD in their home country.
Following the launch of the link, Clearstream has successfully migrated the Baltic markets onto its InvestorCSD model, a one-stop custody solution for European markets and a single access point to both T2S and its ICSD services.
“For our customers, the direct access to the Nasdaq CSD means reduced risk and operational efficiencies. It also represents a further expansion of our Investor CSD model, meeting our customers’ appetite for more diverse markets and allowing them to realise more of the opportunities provided by TARGET2-Securities while still benefiting from our harmonised services,” said Thilo Derenbach, head of European custody product, Clearstream.