Clearstream’s new offering takes T2S cross-border

  • Clearstream launches T2S Investor-CSD model by migrating five markets
  • Provides centralised access for holding and settling assets from T2S-in, T2S-out and international (XS) markets
  • New offering deploys best-in-class asset servicing to support T2S cross-border settlement ambitions

Deutsche Börse Group’s post-trade services provider Clearstream has successfully migrated the Belgian, Dutch, French, Italian and Luxembourgish markets onto its new TARGET2-Securities (T2S) Investor-CSD model. It thereby brings the first real cross-border volume onto the ECB’s pan-European settlement platform.

With this move, the vision of a harmonised settlement landscape for securities across national borders finally becomes a reality. Approximately 80% of the custody and settlement volume of T2S markets is now available through Clearstream’s Investor-CSD service, according to the latest 2016 full year figures published by the European Central Bank.

Clearstream is the first CSD to deploy a fully-fledged Investor-CSD strategy that allows its customers to access all T2S markets, in central bank money, and the international market through a single point of access. The roll out takes place on a market-by-market basis, further T2S-connected markets will follow over the coming months.

Philip Brown, Co-CEO of Clearstream Banking S.A., said: “In order for our customers to get the best out of T2S, we have developed an entire suite of value-accretive services in close cooperation with the market. Our new operating model represents the first genuinely cross-border settlement service augmented with asset servicing functionalities. Key benefits include streamlined connectivity, harmonised asset servicing across CSD and ICSD accounts for all markets, partnerships with local agents to ensure best possible asset servicing for T2S-in markets and, critically, true collateral mobility and efficiency across T2S and ICSD markets.”

Alain Pochet, Head of Client Delivery at BNP Paribas Securities Services, which in Clearstream’s new operating model acts as the local agent for the Belgian, Dutch and French markets, outlined: “We are pleased to support Clearstream with this initiative and to help bring more cross-border interconnectivity to European financial markets. By engaging in partnerships such as this, we aim to demonstrate our commitment to providing the highest levels of client service and our technical capacity, while also continuing to develop our customised solutions.”

Stefano Favale, Head of Global Transaction Banking at Intesa Saopaolo Group, acting as local agent for the Italian market, added: “We are delighted to contribute to this pioneering move in terms of market evolution in close partnership with Clearstream. This milestone is the result of a long, fruitful collaboration aiming to improve the market landscape for the benefit of all participants. At Intesa Sanpaolo, this is our constant focus."

About Clearstream

As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 56 domestic markets worldwide. With 13 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.