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.
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.
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.
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.
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:
Collateral Management – Unlocking the Potential in Collateral According to a study by Accenture and Clearstream, the financial services market is losing more than €4 billion annually in collateral management costs through operational inefficiencies.