Deutsche Börse launches next-generation digital post-trade platform
- Digital post-trade platform D7 enables end-to-end digital securities processing
- Over 80 per cent of German securities eligible to be digitised through centralised digital register by mid-2022, enabling same-day-issuance and paperless, automated straight-through processing
- Launch partners include leading financial institutions and global technology partners
Global market infrastructure provider Deutsche Börse plans to launch a regulatory compliant, fully digital post-trade platform called D7, anchored in the recently introduced German digital securities law framework.
The new cloud-backed and DLT-ready D7 platform will enable market participants to digitise their financial products with continuing access to both existing central and distributed infrastructures and markets.
The D7 platform paves way for same-day-issuance and paperless, automated straight-through processing for the entire value chain of issuance, custody, settlement, payment and asset servicing for digital securities. As of mid-2022, over 80 per cent of German securities will be digitisable via D7, fostering digitisation of the German and European financial markets. D7 will complement the Group’s established “7 Market Technology” infrastructure portfolio.
For this transformational step forward in realising a digital future for securities markets, Deutsche Börse has joined forces with several leading global and German financial institutions to create a market-ready digital infrastructure, including BNP Paribas, Citi, DekaBank, Deutsche Bank, dwpbank, DZ Bank, Goldman Sachs, Raiffeisen Bank International and Vontobel. The D7 platform is being developed in collaboration with long-term strategic technology partners Digital Asset and Microsoft, as well as R3 and VMware.
Stephan Leithner, member of the Executive Board of Deutsche Börse, responsible for Pre- & Post-Trading, says: “With D7, we’re providing the financial community with a next generation digital securities post-trade platform to unlock the potential of truly digital and decentralised finance. It’s time not only to digitise single processes; it’s time to reinvent post-trading altogether for a stronger, more sustainable and digital future of securities markets.”
Christoph Böhm, CIO/COO and member of the Executive Board of Deutsche Börse, adds: “D7 reflects our strategic ambitions and the clear focus we put on fostering innovation and new technologies. We are creating the next generation of future-proof financial infrastructure for the digital era, delivering cutting-edge technology and services, and paving the way for the transformation towards digital markets for our industry.”
D7 implementation timeline
The complete functionality of the D7 platform will be rolled out in phases over the next few years.
- November 2021: Digital central register
A new central register of Clearstream Banking AG forms the basis for issuance and custody of dematerialised securities for the first time in Germany in compliance with new legislation introduced earlier this year (eWpG). The central register will be linked through Clearstream Banking AG, Frankfurt, to existing core European post-trade infrastructure (e.g. T2S).
- Mid-2022: Dematerialised issuance
D7 supports same-day-issuance and paperless, automated straight-through processing for certificates and warrants issued at Clearstream Banking AG. This step reduces friction, the need for reconciliation, as well as administrative efforts and costs significantly. 80 per cent of German ISINs will be eligible.
- 2022-2024: Distributed network and DLT capabilities
As an open platform, D7 supports decentralised and delivery-versus-payment (atomic) settlement and custody systems. This will include connection to existing specialised DLT offerings, such as HQLAx for collateral basket lending service and FundsDLT for funds administration/distribution.
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 59 domestic markets worldwide. With 16 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.