01.21.2022

Clearstream, EuroCCP Connect for Post-Trade

01.21.2022
Clearstream, EuroCCP Connect for Post-Trade
  • EuroCCP-cleared equities and ETFs eligible for settlement via Clearstream Banking S.A.
  • Freetrade first user for several European markets

Clearstream and EuroCCP have launched a new pan-European post-trade connection, making exchange-traded equities and ETFs which are cleared via EuroCCP eligible for settlement via Clearstream Banking S.A.

Centrally cleared and settled transactions have been in continuously increasing demand across the globe, providing additional safety to complex cross-border transactions. Via Clearstream’s Investor CSD solution, participants can settle their transactions for all T2S markets and the international market within one account, gaining additional liquidity and efficiency for pan-European transactions.

The UK-based investment platform Freetrade is the first customer settling a large range of markets via Clearstream in the framework of this proposal – Austria, Belgium, Finland, Germany, the Netherlands, Portugal and Sweden. Further T2S markets will follow in the coming months.

Thilo Derenbach, Head of European Custody Product at Clearstream, said: “Connecting EuroCCP to our Investor CSD offering adds to Clearstream’s vision of seamless European post-trade market activities, for equities and ETFs as well as fixed-income products. Being able to consolidate their entire trade flows within Clearstream – CCP-cleared or not – investors gain additional liquidity and efficiency for their cross-border transactions.”

Cécile Nagel, President at EuroCCP, said: “We are delighted to partner with Clearstream on the use of their Investor CSD product, initially for our mutual client Freetrade. As a pan-European clearing house with access to multiple CSDs across the continent, the T2S Investor CSD functionality provides a number of important benefits, including operational and funding efficiencies to market participants and end investors. We are looking to further support and innovate with Clearstream as users look for more efficient post trade processes in the future.”

Adam Dodds, CEO at Freetrade, added: “The addition of European stocks to the platform is a key step for us as we begin our expansion into Europe and beyond. Our mission is to get everyone investing while keeping prices low. Freetrade’s direct to market access and proprietary brokerage platform helps to unlock cost-savings that we can pass onto our customers through a simple and low-cost investment experience. We will continue to add more European exchanges to the platform as we expand across Europe.”

Source: Clearstream

Related articles

  1. Recognition follows the adoption of a decision on the equivalence of the regulatory frameworks.

  2. Derivatives clearing obligation is being adapted as part of the interest rate benchmark reform.

  3. Buy Side Forced to Review Collateral Arrangements

    Initial margin for centrally cleared markets increased by $300bn over March 2020.

  4. Basel Committee Consults on Interest-Rate Risk

    LCH SwapAgent said trade highlights its coordination of the transition to risk free rates for non-cleared OTC ...

  5. Regulators Defend MiFID II Transparency

    CPMI and IOSCO encourage work to enhance transparency regarding new access models and facilitate porting.