Clearstream and LCH SA add Austria and Spain to joint connection
As from today, all Austrian and Spanish government debt securities cleared by LCH SA’s RepoClear service are available for settlement through Clearstream Banking AG.
The two new markets complement the existing proposition for Belgian, French and German government debt. RepoClear clearing members can now choose Clearstream as a new settlement location for these two markets. Additionally, investors are able to consolidate an even wider range of their European settlement activity in one place, minimising cross-border inefficiencies, reducing intraday liquidity requirements and fostering global trading.
Both markets have shown continuously increasing volumes since the implementation of Clearstream’s Investor CSD model, which leverages Clearstream’s CSD in Germany, the biggest participant in T2S, as a single gateway to European markets in the T2S zone.
Corentine Poilvet-Clediere, Group Leader, Head of RepoClear, Collateral and Liquidity, LCH SA, said: “An open approach and customer choice remain central to our strategy and values as a clearing house, as such, it is LCH SA’s role to support our members’ settlement strategies whilst enabling them to benefit from RepoClear’s deep and diverse netting pool. We are thus delighted to continue to serve our membership in expanding its choice in settlement venues.”
Thilo Derenbach, Head of European Custody Products at Clearstream, said: “We have seen strong demand for Clearstream’s and LCH’s joint service for Belgian and French government bonds launched last year. Investors value the combination of central clearing and settlement, enhancing safety and efficiency for European debt transactions. Clearstream is excited to broaden this proposition as part of its extensive international network, strengthening connections between key players on the European T2S landscape for the benefit of our clients and the industry.”
Clearstream, which is part of Deutsche Börse Group, is a leading European post-trade services provider. Via its international central securities depository (ICSD), it 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. Its subsidiary Clearstream Banking AG is the German central securities depository (CSD), providing post-trade infrastructure for the German market while offering access to a growing number of international markets.