Central bank money (CSD)
As an international central securities depository (ICSD) and central securities depository (CSD) for the German market, Clearstream is in a position to offer settlement services in either central bank or commercial bank money.
Clearstream Banking Frankfurt (CBF), as the German CSD, facilitates over-the-counter (OTC) and stock exchange transactions settlement on the German domestic market or across markets. For the CSD settlement transactions in EUR currency, Clearstream makes use of central bank money deposits.
OTC securities transfers against payment in non-EUR currency are also possible, but are settled in commercial bank money. The cash settlement takes place via Clearstream´s Creation platform.
CBF offers a broad range of services in domestic and foreign securities. CBF is the central securities depository in Germany for securities eligible for collective safe custody (CSC), in accordance with Section 5 of the German Securities Deposit Act. CBF settles transactions against payment or free of payment for all German securities and financial futures markets as well as various global trading platforms.
Through its electronic settlement platform CASCADE, CBF offers the settlement of both stock exchange trades and OTC transactions for the securities it keeps in collective safe custody. Stock exchange trades for securities held in collective safe custody are for the most part settled in collaboration with a central counterparty - Eurex Clearing AG. That reduces the risk normally associated with settlement and ensures delivery positions can be offset.
CBF also provides settlement, custody and administration services for foreign and international securities held by its customers either via links into central securities depositories, CSD links, or via its link to our ICSD, Clearstream Banking Luxembourg (CBL).
Information on the settlement processes for foreign and international securities held on the Creation platform can be found in the CBL Customer Handbook.