Announcement

Triparty Collateral Management Service (CmaX): ESG bond collateral baskets

Collateral Management and Lending

Reference

Code
A21134
Service level
CBL
Last Updated
15.12.2021

Clearstream Banking1 informs customers that effective

10 December 2021

it has added Environmental, Social and Governance (ESG) bond identifiers as criteria that is usable to define collateral eligibility, concentration limits and haircuts. These include green, social, sustainability and sustainability-linked bonds from global issuers and leverage international market standards, principles and guidelines available. Any of Clearstream Banking’s risk and liquidity criteria can be used alongside, for example, credit rating, issuer type or issuer country.

Clearstream Banking already supports the collateral ESG inclusion and exclusion strategies of its customers. Whilst we see further opportunities around ESG metrics across asset classes as the market matures, this step already allows customers to incorporate positive ESG factors into their funding and financing activities. As part of the broader Deutsche Börse sustainable products and services, this is an enabler to support secondary market liquidity in the growing sustainable bond segments.

Sustainable finance is a driving force to strengthen practices and standards across the industry globally and to reorient capital flows towards more sustainable investments. As a post-trade infrastructure, Clearstream Banking provides markets with trusted, transparent and secure triparty collateral and securities lending services. Strong governance and best practice underpin our processes as to enable investor engagement and support customers in achieving their ESG objectives.

Further information

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.