JPMorgan has announced its appointment as the exclusive securities clearance provider for Deutsche Postbank AG for its international fixed income securities portfolio, which is valued at more than Euro18 billion. The mandate represents the largest German combined international securities, clearing and custody contract of the year to date. The transition of clearance activities, which is being completed in two phases, will be finalized this month.
JPMorgan GlobeClear” will provide clearance and custody services for Deutsche Postbank debt securities which are traded across 18 international markets. The deal is unique as it is the first time a clearing and custody mandate has been awarded for the entire international, non-German proprietary trading activity of a business in Germany.
“Working with Deutsche Postbank AG solidifies our leading position in the German public banking sector. It builds upon our successes in Europe, and provides even greater recognition and validation of the strength of our platform, people and expertise in managing and supporting global same-day trading activity,” stated Frank Reiss, JPMorgan’s GlobeClear Product Head. “We are an industry leader in global clearance because we have the unique combination of real-time settlement and access to the global market.”
Richard Schmidt, Head of Financial Markets Services Department at Deutsche Postbank AG, commented, “This is a landmark deal for us at Deutsche Postbank AG as it is the first time we have utilized an outside global securities clearing provider on this scale for our proprietary activity. It means we can now significantly grow our proprietary operation with international counterparties in a standardized and consistent way. We now have the ability to effectively settle our securities transactions internationally through JPMorgan.”