CBL becomes a new direct settlement location for RepoClear transactions cleared by LCH SA
Clearstream Banking1 is pleased to inform customers, who are clearing members or agents of clearing members of the Paris-based entity LCH SA, that LCH SA will offer the option to settle various European cash bonds and repo markets directly in Clearstream Banking S.A. (CBL).
Currently, LCH SA clearing members or agents of clearing members have the choice to settle German debt in T2S either with Clearstream Banking AG (CBF) or via a Settlement Agent Service in CBL.
Impact on customers
- As of October 2018, German debt can be settled directly in CBL accounts via a Power of Attorney (PoA) given to LCH SA. Customers currently subscribed to the Settlement Agent Service will be contacted to transition to the standard PoA setup.
- As of December 2018, Austrian, Dutch, Finnish and Portuguese debt will be available.
- As of early 2019, Irish, Slovakian, Slovenian and supranational debt will be added.
All of these debt securities can be settled directly in CBL accounts, with
LCH SA acting as Attorney and instructing on behalf of the clearing member or its agent via a single PoA.
Note: For German debt, customers who signed a CBF PoA and want to settle in CBL must sign a new PoA for CBL.
Further information
Customers who would like to benefit from direct settlement in CBL of their RepoClear transactions cleared by LCH SA should contact LCH SA and their Relationship Officer at Clearstream Banking to receive a copy of the CBL PoA and prepare the onboarding.
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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, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.