RepoClear has extended its settlement connections to investor CSDs so that members are now able to settle:
- Dutch Government bonds at Euroclear Netherlands
- Austrian and Spanish Government bonds at Clearstream Banking Frankfurt
Corentine Poilvet-Clediere, Group Leader, head of RepoClear, Collateral and Liquidity, LCH SA, said in a statement: “An open approach and customer choice remain central to our strategy and values as a clearing house, as such, it is LCH SA’s role to support our members’ settlement strategies whilst enabling them to benefit from RepoClear’s deep and diverse netting pool. We are thus delighted to continue to serve our membership in expanding its choice in settlement venues.”
In a separate statement, Clearstream also noted that all Austrian and Spanish government debt securities cleared by LCH SA’s RepoClear service are available for settlement through Clearstream Banking AG.
The two new markets complement the existing proposition for Belgian, French and German government debt. RepoClear clearing members can now choose Clearstream as a new settlement location for these two markets. Additionally, investors are able to consolidate an even wider range of their European settlement activity in one place, minimizing cross-border inefficiencies, reducing intraday liquidity requirements and fostering global trading.
Both markets have shown continuously increasing volumes since the implementation of Clearstream’s Investor CSD model, which leverages Clearstream’s CSD in Germany, the biggest participant in T2S, as a single gateway to European markets in the T2S zone.
Thilo Derenbach, had of European Custody Products at Clearstream, said in a statement: “We have seen strong demand for Clearstream’s and LCH’s joint service for Belgian and French government bonds launched last year. Investors value the combination of central clearing and settlement, enhancing safety and efficiency for European debt transactions. Clearstream is excited to broaden this proposition as part of its extensive international network, strengthening connections between key players on the European T2S landscape for the benefit of our clients and the industry.”
Olivier Grimonpont, global head of Product Management, Market Liquidity at Euroclear, said in a statement: “With a broad range of European debt markets already cleared by LCH SA and settling in Euroclear, we are pleased to add the Dutch Government Bond market to this offering. Reaching this milestone is another step in our European access strategy to support participants in having a centralised pool of assets.”
Access the full list of settlement venues connecting to RepoClear SA