Germany’s DekaBank has chosen Clearstream’s InvestorCSD for all post-trade services, providing it access to a range of European markets.
DekaBank will use the InvestorCSD model, Clearstream’s one-stop custody solution for European markets, starting with settlement of securities in Austria.
Eurobonds and the markets in Belgium, the Netherlands, France, Italy and Spain are to follow in 2020 and 2021.
“As a German securities services provider and direct CSD participant, we have opted for an efficient T2S connection via the German CSD Clearstream,” said Timo Röder, head of securities settlement and network management, DekaBank
“DekaBank will have the benefit of a shortened settlement and custody chain, improved liquidity management by using central bank money via its own dedicated cash account, optimised asset pooling and asset safety.”
Through the InvestorCSD model, DekaBank will be able to pool its assets across Clearstream’s domestic CSD in Germany and its international CSD (ICSD) in Luxembourg, providing it with increased liquidity and enabling seamless transfer of assets with no dependency on local market infrastructures.
Clearstream went live with the InvestorCSD model in April last year with the aim of providing banks a single access point to both TARGET2 Securities (T2S) and its ICSD services. It also enables a single settlement location for exchanged-traded and over-the-counter (OTC), cleared and non-cleared activities.
“By means of our consolidated ICSD and CSD collateral pools, DekaBank can enhance liquidity and settlement management efficiencies for both central and commercial bank money,” added Thilo Derenbach, head of European custody product, Clearstream.