Clearstream and LCH.Clearnet have introduced an automated settlement route for OTC German Government debt transactions.
The routing process for settlement instructions generated by LCH.Clearnet on behalf of its members will be forwarded to Clearstream Banking Frankfurt for settlement, allowing greater levels of automation.
This new development will result in substantial benefits for members of both institutions, says Clearstream. “Customers holding their securities assets with Clearstream Banking Frankfurt will no longer need to instruct Clearstream Banking Frankfurt, therefore reducing their operating costs and eliminating any matching issues,” says a company spokesman. “This new process will offer Clearstream Banking Frankfurt customers an additional way to optimise the use of assets held in safe-custody.
Matthias Ganz, Chief Operating Officer of Deutsche Brse Group, described the new service as an example of Clearstream’s commitment to facilitate market openness. “This new development will not only ease settlement of LCH.Clearnet transactions, but also contribute to improve the efficiency of the entire clearing and settlement industry,” he says.
Clearstream is now a settlement location for 22 trading platforms and Central Counterparties (CCP), in addition to the trading platforms and CCP run by the Deutsche Brse Group. The link with LCH.Clearnet follows two similar routes opened in the fourth quarter of last year to BrokerTec and MTS Deutschland.