Clearstream and LCH win ‘Best Innovation in Market Infrastructure’ award for their post-trade connection by GC magazine

24.06.2021

Clearstream and LCH received the award for ‘Best Innovation in Market Infrastructure’ for their post-trade connection as part of Global Custodian magazine’s Leaders in Custody Awards 2021. The annual awards recognise the innovation and achievements of infrastructure- and service providers within the securities industry.

The award recognises the connections between LCH and Clearstream for cleared equities and repo transactions. As part of its European Custody solution, Clearstream has developed a joint connectivity roadmap to European Clearing Houses, such as LCH SA RepoClear, to allow customers to not only consolidate their OTC flows into our custody solution, but to equally aggregate their CCP-cleared flow into a single account at Clearstream.

Bundling settlement flows 

The post-trade connection with LCH SA RepoClear relieves international investors from cumbersome processes for cross-border transactions, such as having to maintain accounts at different settlement or custody locations that support the security in question. A single point of access for a wide variety of asset classes, jurisdictions and trade-flow sources helps minimise these hurdles. The consolidation possibilities of such flows are an integral part of Clearstream’s European Custody proposition.

Post-trade connection with LCH SA

Since January, all French and Belgian government debt securities cleared by LCH SA’s RepoClear service are available for settlement through Clearstream Banking AG and complement Clearstream’s existing settlement proposition for German government debt, implemented in 2018. It allows RepoClear’s clearing members to benefit from Clearstream being a new settlement location for these two markets, allowing customers to consolidate an even wider range of their European settlement activity in Clearstream Banking AG. Further market migrations are planned still in 2021 to broaden the scope of the offering further.

Growing customer demand

Clearstream customers have already actively tested the connection set-up and approve of the benefits, as NRW.Bank underlines: "First steps on the long-term objective to consolidate securities settlement in central bank money are done. The collaboration and connectivity testing with Clearstream proceeded flawlessly and are well supported.”