01.19.2021

LCH SA RepoClear Expands Settlement Connections

  • Demonstrates LCH’s continued commitment to customer choice and open access
  • From Monday 18 January 2021, RepoClear has extended its settlement connections to investor CSDs so that members are now able to settle:Belgian and French Government bonds at Clearstream Banking Frankfurt
  • Spanish Government bonds at Euroclear France
  • French and German Government bonds at Iberclear (BME)
  • A full list of settlement venues connecting to RepoClear SA can be found on the LCH website: https://www.lch.com/services/repoclear/repoclear-sa

Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA, said: “As an open access clearinghouse, an important part of LCH’s role is to support our members’ settlement strategies whilst allowing them to benefit from RepoClear’s deep and diverse netting pool. We are delighted to continue to support our membership in expanding its choice in settlement venues.”

Thilo Derenbach, Head of European Custody Product at Clearstream, said: “French and Belgian government debt remain in continued high demand. We are excited that we can offer a broadened settlement proposition for these two new domestic markets. With this development, Clearstream’s and LCH’s clients can take advantage of the operational benefits of bundling their settlement flows with us.”

Brigitte Daurelle, CEO Euroclear France, said: “We are pleased to provide wider access to the settlement of bonds cleared at LCH by offering a settlement solution for cleared Spanish bonds.  We are committed to the European market with settlement capabilities for cleared French, German, and Belgian Debt. This extension is fully in line with our European access strategy and will give clients, that are active in the market a broader range of choices and options.”

Jesús Benito, CEO, Iberclear (BME), said: “The extension of the range of securities cleared in LCH SA that can be settled in Iberclear is part of the strategy of extending to institutions the possibility to settle and hold in their Iberclear accounts the transactions they clear in other CCPs, thereby taking advantage of the benefits generated by centralizing the custody of their assets in their reference depository.”

Source: LCH

Iberclear is incorporating the settlement of German and French government debt securities

Iberclear, the Spanish Central Securities Depository and a BME company, is incorporating the settlement of German and French government debt securities and certain bonds cleared in LCH SA, following the agreement signed with this clearing house.

Iberclear participants which trade and clear certain French and/or German fixed income securities through LCH SA will be able to instruct the settlement of these transactions in their accounts with Iberclear. In addition, in the case that they have already authorized LCH SA to instruct their securities accounts with Iberclear, they will not need to submit any additional authorization to Iberclear.

Specifically, the securities that may be settled in Iberclear are:

  1. French government debt and the bonds known as “Caisse d’amortissement de la dette sociale (CADES)”.
  2. German Government Debt and the bonds denominated “Jumbo Pfandbriefe”.

Today’s agreement extends the scope of the agreement existing since 2017 between Iberclear and LCH, S.A. by which LCH, S.A. accesses the ARCO System. In this way, in addition to the securities admitted to trading on the AIAF Fixed Income Market and the Public  Debt Market and cleared  in  LCH, S.A. which could already be settled in Iberclear, the German and French fixed income securities incorporated through this new agreement are also included.

Jesús Benito, CEO of Iberclear, said: “The extension of the range of securities cleared in LCH SA that can be settled in Iberclear is part of the strategy of extending to institutions the possibility to settle and hold in their Iberclear accounts the transactions they clear in other CCPs, thereby taking advantage of the benefits generated by centralizing the custody of their assets in their reference depository”.

Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA said: “As an open access clearinghouse, an important part of LCH’s role is to support our members’ settlement strategies whilst allowing them to benefit from RepoClear’s deep and diverse netting pool. We are delighted to continue to support our membership in expanding its choice in settlement venues.”

Source: Iberclear

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