Clearstream to Increase U.S. Coverage

Terry Flanagan

Clearstream, the clearer owned by Deutsche Börse, is extending its end-of-day deadlines across American markets in April next year as it aims to cover the entire US processing day in 2016.

The Luxembourg-based international central securities depository said in a statement that settlement deadlines for internal and domestic US transactions and US dollar cash will be extended by two hours to 14:00 EST from April.

The statement said: “This results in improved cash and securities deadlines for internal settlement activity as well as for domestic settlement with local counterparties in the US, Canada and Latin American markets such as Argentina, Brazil, Mexico, Uruguay and Peru. The step will also facilitate the free flow of collateral within the extended deadlines.”

In 2015, the deadlines will be extended by a further one and a half hours to 15:30 EST before settling through the entire US business day in 2016.

Jeffrey Tessler, chief executive of Clearstream, said in a statement: “From a collateral management perspective, it greatly enhances our customers access to the highly liquid US market as well as the AAA-rated Canadian market through our Global Liquidity Hub.”

In a report on December 9 Clearstream said that last month the value of assets under custody held on behalf of customers increased by 7% from November 2012 to a record €11.9 trillion. Securities held under custody in Clearstream’s international business increased by 6% to €6.3 trillion over the same period.

Last month Clearstream processed 3.47 million international settlement transactions, 10% more than in November 2012, of which 82% were OTC transactions and the rest were on an exchange.

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