New settlement solution for German debt

11.04.2017

Clearstream is offering a new settlement solution for German debt, for customers who are clearing member firms, clearing Bunds and German repos through LCH SA.

Such transactions will be able to be settled in customers' Clearstream Banking Luxembourg (CBL) account, in addition to the Clearstream Banking Frankfurt (CBF) setup as an existing settlement location. As a result, Clearstream customers will be able to settle these transaction either in central bank money via CBF or in commercial bank money via CBL.

This new solution offers customers the opportunity to make the most of our TARGET2-Securities (T2S) market environment. Customers will be able to choose to settle their German government securities in CBF as German CSD – the closest link between T2S and German debt as issuer CSD for all German securities, while benefitting from the CBL’s securities lending and collateral management services as ICSD.

Our new solution follows LCH group’s recent decision to extend its RepoClear service to offer clearing for cash and repo trades on German government securities via its Paris-based entity LCH SA (these securities also continue to be cleared at its London–based entity, LCH Ltd).

Clearstream's new solution is set to go live in the coming weeks; watch this space and our customer announcements for further news.