Clearstream appoints HSBC to open CSD link to Saudi Arabia
The link will allow eligible international investors to hold Saudi fixed-income securities and ETFs via a foreign nominee omnibus account structure for the first time
The link will allow eligible international investors to hold Saudi fixed-income securities and ETFs via a foreign nominee omnibus account structure for the first time
Jens Hachmeister, head of issuer services and new digital markets at Clearstream, outlines the group's plans to be a core market infrastructure for digital securities.
The solution will target certain banks and buy-side firms that will be required to establish tri-party collateral management arrangements for the first time.
Since taking on the business, Clearstream Fund Centre has reported a 25% increase in assets under administration to more than €300 billion.
It is the third Clearstream CSD to receive licenses under CSDR, following authorisation of its German and Luxembourg-based businesses.
Clearstream’s Eurobond’s product group also includes its network management and market partnership activities.
The move could provide significant savings for banks that have faced increased regulatory costs to trade in the balance sheet-intensive repo market.
The new partnerships with Clearstream, Euroclear and Iberclear will provide a single point of access to minimise cross-border hurdles.
Clearstream can now offer custody and settlement services for banks and their cross-border transactions in 99% of all T2S-in securities.
The investment is the latest in a number of ventures made by Clearstream in the digital asset space.