Fostering financing for global markets
Our world is connected – and so are our financial markets. We buy goods from all over the world and we buy shares from companies that are based on another continent. Post-trading services such as settlement and custody are the backbone of every transaction on the stock market. After buy and sell positions have been matched and cleared successfully, settlement (matching the money with the securities) and custody (safekeeping of assets) assure that each market participant gets exactly what has been agreed upon.
But as always, it is not as easy as it sounds: Differing laws, financial systems and customer needs bear challenges for cross-border activities. With the ever-increasing globalisation and speed of financial markets, international solutions are even more essential.
Clearstream connects domestic markets from all over the world within one single network offering the entire range of post-trading securities processing services, such as settlement, custody, asset servicing and collateral management. Once Clearstream has established a link to a country, local and international banks as well as market participants can access the integrated settlement and custody network to invest in the domestic market. This way, Clearstream encourages market development, harmonisation, liquidity and stability – across the globe.
Currently, Clearstream connects 57 domestic markets in its network giving access to market participants from all over the world. This market coverage represents around 86 per cent of global gross domestic product (GDP). 20 of the European markets are connected to the European Central Bank’s (ECB) pan-European settlement platform TARGET2-Securities (T2S). Via Clearstream’s European Investor CSD model and its network of international links, financial market players can invest in any member country – via one single access point.
Not only established markets like the U.S., Germany or Australia are connected via Clearstream, but also emerging markets: Kazakhstan and Ukraine are among the latest additions. Via this global network, international investors can invest in fast-growing economies, which in return can benefit from various financing opportunities. And the number of connected countries continues to grow steadily.
Liquidity is key for financial markets. Despite increasing market fragmentation and populist tendencies in politics, Clearstream enables globalisation by connecting the world to capital and funding resources to fuel the global economy. To deploy their securities in the best possible way, customers can leverage Clearstream’s central liquidity pool. Through securities lending services and other collateral and liquidity management products, investors can continuously optimise the use of their assets.
Stable and secure infrastructures for settlement and custody, harmonised systems and neutral third parties who keep your assets safe are crucial for functioning financial markets. By expanding its global network, Clearstream does not only provide market participants with investment opportunities, but also supports market stability globally – in established and emerging economies.