Clearstream - Post-Trade Settlement and Collateral Management Securities Services

Clearstream Banking is a global leader in post-trade settlement services offering customers access to 54 markets around the world, 52 domestic markets, the international securities market and the carbon emission rights market.

Our global reach stretches far and wide as we also cover all major asset classes and enable customers to settle in real-time across borders, time zones and currencies. Clearstream is a successful, mature securities services organisation with a stable AA credit rating and is situated within the Deutsche Börse Group.

International central securites depository services

We operate as an international central securities depository (ICSD) headquartered in Luxembourg and deliver securities services to customers in more than 110 countries. Additionally, Clearstream is a central securities depository (CSD), based in Frankfurt, providing services for the German securities industry while offering access to a growing number of markets in Europe.

Issuance, settlement and custody of securities

Our award-winning services include the issuance, settlement and custody of securities in addition to investment funds services, which is gaining much market interest in its services regarding funds traded on exchange. Investment funds are also eligible for Clearstream's collateral management services delivered by the global securities financing team.

Complex collateral management systems

Clearstream is renowned for its unique and sophisticated collateral management service suite located in the global liquidity and risk management hub. This is a comprehensive collateral management and securities lending environment which offers flexible and comprehensive services for our customers. In addition to our 'classic' services, Clearstream has now developed a pioneering outsourced solution called Liquidity Hub GO, which enables customers to white-label collateral management services.

Liquidity Hub GO has been rolled out with Brazilian CSD Cetip and is currently being developed for the Australian Securities Exchange. The solution enables the infrastructure customer to connect directly to Clearstream's technology but all the underlying assets remain in the domestic market, as required in many jurisdictions. This unique capability is causing a great deal of excitement in the global marketplace and Clearstream is now working with infrastructures (such as CSDs and exchanges) and central banks.

These developments by Clearstream have come at a time when institutions across the world are facing a growing need for more collateral management. The impact of regulations, such as the European Market Infrastructure Regulation (EMIR), the Capital Requirements Directive (CRD) IV in Europe and Dodd Frank in the US, is that institutions must keep their exposures even more secure than before.

However, many institutions lack the systems capable of delivering sufficiently complex collateral management and many have no general overview of their available collateral pools. A recent Clearstream and Accenture study has revealed the scale of inefficiencies in collateral management across the financial sector.

Joint ventures in the securities market

An important part of Clearstream's strategy is forging partnerships with market experts in order to increase service scope for our customers. In addition to the many business partnerships we have and which enrich our global network, we also offer services through two joint ventures:

• REGIS-TR, the European trade repository, enables customers to register OTC derivative contracts in compliance with forthcoming EU law and offers a number of value-added services that increase efficiency and reduce risk. This company was launched with Bolsas y Mercados Españoles (BME) and is based in Luxembourg
• LuxCSD provides Luxembourg's financial community with issuing and central bank settlement as well as custody services for a wide range of securities including investment funds. It is a partnership between Clearstream and the Banque Centrale du Luxembourg