LCH RepoClear further expands settlement connections with European CSDs

The expansion will allow members to settle Dutch, Austrian and Spanish government bonds.

By Wesley Bray

LCH’s repo clearing house has extended its settlement connections to investor central securities depositories (CSDs), providing greater choice for banks.

Members will now be able to settle Dutch government bonds at Euroclear Netherlands as well as Austrian and Spanish government bonds at Clearstream Banking Frankfurt.

The move comes as part of LCH’s continued commitment to expand customer choice and its open approach.

“We have seen strong demand for Clearstream’s and LCH’s joint service for Belgian and French government bonds launched last year,” said Thilo Derenbach, head of European custody products at Clearstream.

“Investors value the combination of central clearing and settlement, enhancing safety and efficiency for European debt transactions. Clearstream is excited to broaden this proposition as part of its extensive international network, strengthening connections between key players on the European T2S landscape for the benefit of our clients and the industry.”

Early last year, LCH RepoClear expanded its offering, making all French and Belgian government debt securities cleared by LCH SA’s RepoClear service available for settlement through Clearstream Banking.

In addition, cleared Spanish government bonds were made available to settle at Euroclear France, while French and German government bonds can be settled at Iberclear (BME).

“With a broad range of European debt markets already cleared by LCH SA and settling in Euroclear, we are pleased to add the Dutch Government Bond market to this offering,” said Olivier Grimonpont, global head product management, market Liquidity at Euroclear.

“Reaching this milestone is another step in our European access strategy to support participants in having a centralised pool of assets.”