Clearstream - pooling equities, maximising liquidity

24.04.2015

You thought Clearstream was a Bond House.

But did you know…

  • you can benefit from equity services across 52 markets worldwide.
  • you can gain access to around EUR 4.5 trillion equities under custody.
  • you can use your equities for our collateral management and securities financing services.
  • you will enjoy seamless access to maximum liquidity, as we are building an integrated collateral pool for all asset types, including equities.
  • you can have easy access to our Deutsche Börse Group sister companies, Xetra and Eurex.

Trading

Deutsche Börse Group is tightly integrated which ensures a broad range of services to support equity trading. Being a Clearstream customer, you benefit from easy access to all services offered by our Deutsche Börse sister companies, Xetra and Eurex.

  • Equity trading is one of Deutsche Börse Group’s core businesses, handling around EUR 91.4 billion turnover in equities each month.
  • Eurex Clearing – clearing services for equity trades in the German domestic and international markets.
  • Clearstream processed around 52 million stock exchange transactions and held around EUR 4.5 trillion equities under custody in 2014 from domestic and international markets.

Funding

To ensure seamless access to maximum liquidity for our customers worldwide, Clearstream is building an integrated pool of domestic and international assets. This will provide customers with free choice to settle either in central or commercial bank money. Collateral is effortlessly transferred between CSD and ICSD accounts as if they were one.

  • Automatic allocation of assets for collateral management and securities lending purposes.
  • Access to all ICSD and CSD counterparties from both ICSD and CSD accounts.
  • Optimal services for cash management:
    - 42 eligible settlement currencies
    - same-day value withdrawal and deposits in many currencies
    - foreign exchange services.

Settlement & Custody

Clearstream’s proven track record of servicing equities in the domestic and international markets best illustrates our expertise and capability in the equities business. Our services adapt easily to increased activity from new market segments, such as pension funds and wealth managers.

  • 46% growth of equities under custody since 2009.
  • 35,000 corporate actions equity events and 23,000 equity income payments in domestic market securities processed in 2014.
  • Optimised settlement efficiency providing highly competitive securities and funding deadlines and a comprehensive fails lending programme.
  • More than 25 years experience in servicing equities.
  • Efficient cross-border tax services that combine tax relief and reclaim processes with market specific expertise and support.
  • Industry leading proxy voting service covering all Clearstream proxy voting markets and eligible instrument types.

Finance/Re-finance

Clearstream's integrated, real-time collateral management and securities lending and borrowing services are gathered under the Global Liquidity Hub. While these services are already available for all asset classes, optimal financing opportunities for equities are set to increase under TARGET2-Securities (T2S).

  • The Global Liquidity Hub's services were traditionally geared towards fixed income held in the ICSD. However, the Liquidity Hub Connect service has increased the amount of equities in the Global Liquidity Hub even if it remains under local custody and is spread across numerous accounts.
  • Equities are increasingly used for collateralisation and secured funding. Customer's benefit from Clearstream's triparty services to improve their day-to-day liquidity management.
  • Under T2S, it will be even easier to pool equities held in all participating markets with Clearstream's CSDs. Equities held in the CSDs can then be automatically mobilised for triparty use in Clearstream's collateral management service or for securities financing.

Call us to discuss your equity business