Clearstream offers flexible credit solutions to support the settlement and custody of securities, with collateralized facilities tailored to your operational needs. Clients can choose between intraday overdrafts, access to unconfirmed funds, or pooled credit lines across multiple accounts.
Intraday Technical Overdraft (iTOF)
Clearstream’s iTOF provides intraday credit for purchasing securities early in the settlement day, with covering funds confirmed by the end of processing.
The facility applies across major currencies, with separate limits for less-traded (exotic) currencies. When accounts are linked under an umbrella structure, iTOF also considers the overall net position across those accounts. The credit line is secured by a broad pool of eligible assets, which are valued daily to ensure optimal availability and risk coverage.
Unconfirmed Funds Facilty
This facility allows clients to use incoming funds on a collateralized basis before they’re officially confirmed. These funds may come from pre-advice instructions or pending “against payment” deliveries.
Until confirmation is received, the funds appear as unconfirmed in client reports. Once validated, they’re credited with the original value date, either the date of the pre-advice or the actual receipt date for settlement instructions.
Umbrella credit and collateral services
Clearstream’s umbrella structure lets clients group multiple accounts under a single credit line or shared collateral pool. This setup reduces the cost and complexity of managing credit and collateral across accounts. Clients can define how each account interacts with the umbrella: whether it contributes collateral, shares credit, maintains its own pool, or remains outside the structure.
Key benefits include:
- Managing one collateral pool instead of many.
- Credit lines dynamically allocated based on actual usage.
- Real-time monitoring and reallocation of collateral.
- Optimized access to credit across client and fund accounts.
- Full flexibility to segregate assets while benefiting from group facilities.
