UBS Outsources to Clearstream

UBS has appointed Clearstream as primary ICSD for its global Investment Bank and Wealth Management businesses.

UBS’ decision to consolidate the majority of its securities custody, settlement, and financing business at Clearstream follows an 18-month review, which included the global securities business of UBS’ Investment Bank and Wealth Management.

The outcome of the review is for UBS to transfer its Investment Bank portfolio from Euroclear to Clearstream.

The process was driven by UBS’ goal to realize front to back synergies between its Investment Bank and Wealth Management businesses, whilst integrating these operationally into their recently formed Group Operations structure and achieving further scale benefits. Among the key decision criteria were strategic fit, flow consolidation and global securities financing services including Clearstream’s Global Liquidity Hub for integrated securities lending, borrowing and collateral management services.

As a consequence, UBS Group aims to transfer the majority of its global
Investment Bank business to Clearstream who already service its Wealth Management business. The phased migration of assets from UBS to Clearstream is planned for late 2013.

Ulrich Hoffmann, UBS head of Group Operations, commented: “Our decision to appoint Clearstream as UBS’ primary ICSD helps create synergies across the
UBS Group. This is consistent with our Group Operations’ strategy to further simplify, align, and consolidate our network and post trade processing, across all business divisions where possible.”

Jeffrey Tessler, CEO Clearstream, commented: “We are delighted to expand our longstanding partnership with UBS Wealth Management to now also encompass UBS Investment Bank. The entire market is under unprecedented regulatory and commercial pressure and we are working hard to offer our customers the right solutions so that they can position themselves well for the future, such as via improved collateral management services. UBS’ decision confirms that our business strategy is headed in the right direction.”