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A new pan-European post-trade link between Clearstream and EuroCCP, connecting the CCP to Clearstream’s Investor CSD solution, will allow exchange-traded equity and ETF transactions cleared via EuroCCP to settle in Clearstream Banking SA, the Luxembourg-based ICSD.
Utilising Clearstream’s Investor CSD, market participants are able to settle securities transactions for all T2S markets and the international market through a single account.
According to Clearstream, Freetrade, a UK-based investment platform, is the first customer to employ this facility, settling activity for Austria, Belgium, Finland, Germany, the Netherlands, Portugal and Sweden through Clearstream. Additional T2S markets are likely to be added in coming months.
Clearstream’s head of European custody product Thilo Derenbach says: “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, whether CCP cleared or not, allows investors to gain additional liquidity and efficiency for their cross-border transactions.”
EuroCCP president Cécile Nagel says: “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,” adds Nagel.
Freetrade CEO Adam Dodds comments: “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. We will continue to add more European exchanges to the platform as we expand across Europe.”
