SIX reveals Clearstream partnership intent

SIX and Clearstream aim to have a memorandum of understanding in place by mid-December.
By Paul Walsh
SIX Securities Services and Clearstream have revealed plans to collaborate marking SIX’s second partnership this week.

Following a letter of intent in August, the Swiss CSD and the European ICSD Group aim to have a memorandum of understanding for mid-December.

The partnership is SIX’s second in quick succession following the announcement yesterday that it plans to team up with Digital Asset Holdings to develop distributed ledger technology for the Swiss financial markets.

“Our industry is undergoing a profound change in the way it structures itself and in how it needs to perform. We believe that sustainable success in the future will be defined by collaboration focused on providing true value for clients,” said Thomas Zeeb, division CEO SIX Securities Services.

Both parties say that the partnership has been driven by increased regulation and compliance costs facing financial market infrastructures in Europe.

“The cooperation is intended to improve the client offering as well as our respective market positioning,” said Jeffrey Tessler, chairman of Clearstream and member of the executive board of Deutsche Börse.

“It comes in the context of a post-trade ecosystem undergoing change on an unprecedented scale. The corresponding cost increase for market infrastructure and their clients calls for innovative service solutions and greater focus on economies of scale.”