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 repo 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
Broadridge completes blockchain bilateral repo pilot
18 October 2017 | New York | Reporter: Drew Nicol
The pilot, conducted in partnership with Natixis and Societe Generale, utilises distributed ledger technology in order to make complex processes “more secure, transparent and efficient”
Repo steps back from the brink
18 October 2017 | London | Reporter: Drew Nicol
The European repo market may be recovering from the severe lack of liquidity experienced at year end 2016, according the International Capital Market Association
Philippines repo market to launch in November
09 October 2017 | Manila | Reporter: Drew Nicol
The launch of a repo market was first proposed by Espenilla’s predecessor Amando Tetangco Jr in August 2016
Pilot repo survey reveals Japan as regional activity centre
26 September 2017 | London | Reporter: Jenna Lomax
The survey, which was the first of its kind carried out by ICMA and ASIFMA, found the majority of repo collateral was made up of Japanese government bonds
LCH launches new buy-side repo clearing model
14 September 2017 | London | Reporter: Drew Nicol
Insight Investment, acting on behalf of a UK pension fund, was the first asset manager to clear a trade through the new model
NSD begins servicing repos with Bank of Russia bonds
23 August 2017 | Moscow | Reporter: Jenna Lomax
National Settlement Depository (NSD), Russia’s central securities depository, has begun using Bank of Russia repo trades as a component of the basket of Bank of Russia bonds (OBR)
Myanmar sees first ever repo transaction
26 July 2017 | Myanmar | Reporter: Jenna Lomax
KBZ Bank and YOMA Bank have carried out the first ever repo trade in Myanmar