DekaBank has picked Clearstream to handle its post-trading services such as settlement, custody and asset servicing for its securities activity in Europe.
Clearstream, which is a part of Deutsche Börse Group, delivers post-trade infrastructure for the Eurobond ecosystem. Its investor central securities depository (CSD) model empowers DekaBank to pool its assets across the connected platforms of Clearstream’s domestic and international CSD.
This will increase liquidity and boost seamless transfer between counterparties with no dependency on local markets, it claims. DekaBank will benefit from a lower settlement-related exposure, the ability to pool collateral for settlement and triparty purposes, generate operating efficiencies and receive more cash through settlements.
Austria will be the first market to be processed via Clearstream’s CSD model, with Belgium, the Netherlands, France, Italy, Spain and other markets will follow in 2020.
DekaBank head of securities settlement and network management Timo Röder said, “As a German securities services provider and direct CSD participant, we have opted for an efficient T2S connection via the German CSD Clearstream.
“Thereby, DekaBank will have the benefit of a shortened settlement and custody chain, improved liquidity management by using central bank money via its own dedicated cash account, optimised asset pooling and asset safety.”
Clearstream stated the collaboration comes after rising pressures are being placed on the integration of European post-trade infrastructure.
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