13 April 2017
Luxembourg
Reporter: Mark Dugdale

Clearstream tackles German debt with link to LCH’s RepoClear


Clearstream has begun offering a new settlement solution for German debt for customers that clear German bonds and repos through LCH.

The move follows LCH’s extension of its RepoClear service to cash and repo trades on German government securities last month.

Trades cleared through LCH’s Paris subsidiary can be settled in Clearstream Banking Luxembourg accounts.

Combined with Frankfurt as an existing settlement location, Clearstream customers will be able to settle transactions either in central bank money via Frankfurt or in commercial bank money via Luxembourg.

The new service for German bonds and repos will also take advantage of Cleastream’s links to the Target2-Securities (T2S) platform, giving customers the ability to settle their German government securities in Frankfurt as the German central securities depository (CSD), while benefiting from Luxembourg’s securities lending and collateral management services as an international CSD.

LCH’s new offering covers trades on German government and regional debt. Clearing members are able to use Clearstream Bank Frankfurt or Euroclear France as their CSD, or Euroclear Bank as a settlement agent.

Christophe Hémon, CEO of LCH SA, said: “The implementation of T2S brings with it an opportunity to expand the number of European trades eligible for balance sheet netting, providing greater operational and capital efficiency for our members. It will also allow our members to benefit from potential margin savings thanks to risk offsets among four main European debts.”

RepoClear already clears trades on Italian, French and Spanish government securities. The availability of clearing trades on German debt will also continue to be offered through LCH in the UK.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Hedge funds continue to attract inflows, says J.P. Morgan survey
23 February 2018 | London | Reporter: Brian Bollen
Hedge funds continue to attract inflows, according to a J.P. Morgan 2018 Institutional Investor Survey
SEC votes to extend compliance date for liquidity classification
23 February 2018 | Washington DC | Reporter: Jenna Lomax
The deadline, which will be extended by six months, will provide funds additional time to complete implementation of the final rule's classification requirement
ISDA releases best practice for margin call issuance and response
23 February 2018 | London | Reporter: Jenna Lomax
The ISDA CIC examined the minimum set of fields which is required to communicate the issuance of a margin call, as well as the expected response of a margin call
ESMA gives SSR technical advice
23 February 2018 | Brussels | Reporter: Brian Bollen
Verena Ross, executive director at the ESMA, addressed the Economic and Monetary Affairs Committee of the European Parliament to discuss elements of the short selling regulation
Saxo Bank sees positive growth in 2017
23 February 2018 | Copenhagen | Reporter: Jenna Lomax
Saxo Bank’s reported 33 percent increase in net profit follows the sale of its subsidiary Saxo Privatbank earlier this month
ROBO appoints BNY Mellon as custodian and sec lending agent
22 February 2018 | New York | Reporter: Brian Bollen
ROBO Global, creator of the world’s first ETF to track the global RAAI sector, has selected BNY Mellon to provide the firm with custody and transfer agency services
FCA launches call for input on use of technology for regulation
22 February 2018 | London | Reporter: Jenna Lomax
The Financial Conduct Authority is seeking views on how technology can make it easier for firms to meet their regulatory reporting requirements and improve the quality of the information they provide