LCH SA RepoClear has expanded the settlement connections that it offers to investor CSDs with the addition of links to support fixed income settlement at Euroclear Nederland and Clearstream Banking Frankfurt (CBF).
From today, this will allow SA RepoClear clearing members to settle Dutch government bonds at Euroclear Nederland and Austrian and Spanish government bonds through Clearstream Banking Frankfurt.
Corentine Poilvet-Clediere, group leader and head of RepoClear, collateral and liquidity at LCH SA says: “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 while enabling them to benefit from RepoClear’s deep and diverse netting pool. [This enables us] to continue to serve our membership in expanding its choice of settlement venues.”
Clearstream’s head of European custody products Thilo Derenbach comments: “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 [broadens] 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 and market liquidity at Euroclear, says: “With a broad range of European debt markets already cleared by LCH SA and settling in Euroclear, we [are adding] 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.”
This extends the full list of settlement venues for LCH SA Repoclear, which also includes the National Bank of Belgium (for Belgian debt), Clearstream Banking Frankfurt (for French, Belgian and German debt), Clearstream Banking Luxembourg (for German, Austrian, Dutch, Finnish, Irish, Portuguese, Slovakian, Slovenia debt and supranationals), Euroclear France (for French, Belgian, German and Spanish debt), Euroclear Bank (for German, Austrian, Dutch, Finnish, Irish, Portuguese, Slovakian, Slovenia debt and supranationals), Iberclear (for French, German and Spanish debt) and Monte Titoli (Italian debt).
Additionally, LCH SA and Cassi di Compensazione e Garanzia (CC&G) have an arrangement through which the two clearing houses provide clearing services for Italian government bonds executed on MTS and BrokerTec and settled in Monte Titoli.
