Instinet connects to Clearstream and LCH EquityClear for post-trade activity
Instinet Europe Limited (Instinet) is the first client to leverage the new joint Clearstream and LCH Ltd EquityClear solution. This provides capability across all products listed on London Stock Exchange’s International Order Book (IOB), and subsequently exchange-traded products (ETPs), such as exchange-traded funds (ETFs), exchange-traded notes (ETNs) and exchange-traded commodities (ETCs) that are listed on the exchange’s ETP trading service. It means Instinet can now settle for its clients through Clearstream’s international central securities depository (ICSD).
By using this new LCH Ltd/Clearstream post-trade connection, Instinet benefits from operational risk reduction and increased market efficiency throughout European markets. Being able to consolidate different trade flows – OTC, on-exchange and cleared business – in one location with Clearstream’s Investor CSD model, Instinet’s agency trading business will also have the opportunity to experience greater efficiency and reduced post-trade fragmentation in the European capital markets.
Tanith Johnson, European Head of Operations for Instinet, said: “The European marketplace continues to evolve, so finding ways to drive efficiency for our clients continues to be our primary focus. Instinet is always pleased to quickly embrace new and innovative solutions that can improve our clients’ experience and address changing market structure challenges. We are looking forward to building upon this exciting new aspect of our relationship with 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 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.