Clearstream's domestic CSD revenues boosted by T2S

Revenues from its domestic CSD increased 23% off the back of a new fee structure, following the onset of T2S in Germany and Luxembourg.
By Joe Parsons

Clearstream reported a revenue increase of 10% to €216.1 million in the second quarter, driving by its domestic central securities depository (CSD) business.

Revenues from its domestic CSD increased 23% to €33.7 million, while its international CSD business remained flat year-on-year at €104.8 million.

Assets under custody (AuC) reached €13.4 trillion, up 3% year-on-year.

Gregor Pottmeyer, chief financial officer for Deutsche Boerse, explained on the group’s earnings call the increase in CSD net revenue was due to the introduction of a new fee structure in March, following the introduction of Target2 Securities (T2S).

“The main driver for the increase was reporting services, which previously were included in our settlement fee. Over time, we expect further positive effect from T2S by growth in custody and the value-added services,” said Pottmeyer.

The Global Securities Financing (GSF) unit recorded revenues of €19.6 million, up around 9%, due to a “more favourable business mix, [with] growth in the higher margin securities lending business,” Pottmeyer added.

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