Monthly report / Brexit: Clearstream ensures stable custody services

19.10.2017

The International Central Securities Depository (ICSD) Clearstream, which is part of Deutsche Börse Group, will continue to offer stable custody services no matter how the Brexit negotiations will evolve. This commitment is founded in Clearstream‘s core task, which is to absorb differences in regulatory frameworks. The company was established in 1970 (back then under the name Cedel) by 66 of the world's major financial institutions. The objective: minimising risk of cross-border settlement.

"We standardise what is fragmented", says Philip Brown, Co-CEO of Clearstream Banking S.A. "Clearstream has supported its clients in tough transitions before, among them the Argentina default and the beginning of the sovereign debt crisis with the restructuring of Greek bonds." Clearstream has a strong history of developing solutions to cater for differences between EU requirements and legislation in third countries.

"Even with the UK in the EU, the tasks of a custodian are in no way harmonised because there is no unity of property law or fiscal law across the EU or even within the Eurozone", Brown stresses. "So, from a custody and settlement perspective, we do not enter unknown territory and will not add to the significant challenges the financial industry is facing."

Clearstream prepares for Brexit by joining forces with all other entities of Deutsche Börse Group. A dedicated Brexit transition team helps customers to deal with the changes and ongoing uncertainty. As a leading market structure player with a global network, Deutsche Börse has an existential incentive in maintaining and nurturing its existing strong and proven relationships with London-based firms.

Business overview

 

September
2017

September
2016

Change (%)1

YTD 2017

YTD 2016

Change (%)1

International business (ICSD)

Securities deposits (EUR tn)

6.6

6.8

-3%

6.7

6.7

0%

Number of transactions (mn)

3.6

3.0

19%

32.7

26.1

25%

Domestic business (CSD)2

Securities deposits (EUR tn)

4.5

4.3

4%

4.5

4.4

3%

Number of transactions (mn)

7.5

6.1

23%

67.5

58.2

16%

Investment Funds Services (IFS)

Securities deposits (EUR tn)

2.2

1.9

16%

2.2

1.9

16%

Number of transactions (mn)

1.7

1.5

17%

16.7

13.6

23%

Total

Assets under Custody (EUR tn)

13.4

13.1

2%

13.4

13.0

3%

Global Securities Financing (GSF)

Volume outstanding (EUR bn)

446.8

501.6

-11%

463.7

524.4

-12%

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1 Due to rounding, growth rates cannot be calculated from figures in the chart.

2 On 6 February 2017, Clearstream Banking Frankfurt has transferred its settlement volume to the pan-European securities settlement platform TARGET2-Securities. Since 7 February 2017, German settlement volume is processed solely via T2S.