Our enhanced integrated service offering spans Clearstream's international central securities depository and German central securities depository services, together with services we offer via the Luxembourg central securities depository, LuxCSD - all now available to customers via a single interface and log-on.
Scroll down for insights and updates on the rollout of this new enhanced value proposition, which we refer to as "OneClearstream", and summarise here. The latest addition to our OneClearstream service suite is the activation of LuxCSD's enhanced offering in TARGET2-Securities.
What do we mean when we talk about our OneClearstream service level and our Investor-CSD model?
OneClearstream means customers can connect and access Clearstream Banking Frankfurt as German CSD; Clearstream Banking Luxembourg as international CSD (ICSD) and LuxCSD as Luxembourg CSD, and their related services via a single, integrated platform.
Customers can choose between an ICSD account that provides commercial bank money settlement and asset services across 50+ markets and currencies, and a pan-European Investor-CSD account that provides central bank money settlement and asset services across all EUR markets, or a combination of the two. The enhanced Investor-CSD account provides direct access to TARGET2-Securities (T2S) and Eurobonds markets in Central Bank Money (CeBM) from a single account with best-in-class asset servicing.
Listen to Co-CEO Clearstream's Phil Brown explanation of our Investor-CSD model and in his video interview regarding our (OneClearstream) value proposition.
The OneClearstream value proposition is a result of Clearstream’s efforts to harmonise connectivity channels, streamline our custody network and improve our asset servicing, collateral management and securities lending services.
The rollout of this service follows our T2S migration in February this year, which we celebrated as an important milestone in progressing our business model in line with European market developments for the increased efficiency of European securities settlement.
We did it! How Clearstream reached an extraordinary market milestone
LuxCSD's enhanced service offering
The new Investor-CSD solution for T2S-eligible securities will provide customers with a single point of access, in Central Bank Money, to all T2S markets (with comprehensive instruments coverage).
The service will be activated on a market-by-market basis with access to the first market, German, available from October 2017. LuxCSD customers will be able to leverage the benefits of the harmonised service level solution across the Issuer, and Investor-CSD including:
- A single gateway to access and settle all T2S markets, in Central Bank Money; harmonised settlement processing, aligned with T2S requirements;
- Full market coverage within each country in the T2S zone;
- Cash pooling in Central Bank Money;
- Asset servicing (income, corporate actions, tax, proxy voting) with full events scope coverage and lifecycle management, harmonised with international standards, provided in partnership with leading local agents.
As part of the rollout of Clearstream's enhanced service offering in the T2S environment, we recently launched a new securities lending solution. This product enables customers to benefit from opportunities for the pooling of CSD and ICSD liquidity across asset classes.
ASL principal is a unique service that seeks to overcome collateral fragmentation and enables customers to borrow and/or lend their securities regardless of their settlement or custody location within Clearstream’s central securities depositories. The long-term goal is to offer customers one single pool of liquidity.
By increasing settlement efficiency, ASL principal also minimises customer exposure to the upcoming mandatory buy-ins when settlement fails, which will come into force as part of the Central Securities Depositories Regulation (CSDR).
The ASL principal service complements Clearstream’s existing ASL and ASLplus services.
Another current key focus on rolling out Clearstream's enhanced service level is our new connectivity suite, ClearstreamXact - our new connectivity framework that includes our state-of-the-art graphical user interface (Xact Web Portal) as well as our existing renowned automated services.
ClearstreamXact allows customers to access our wide range of ICSD and CSD services: Settlement, cash management, asset servicing, collateral management and in the future; securities lending and investment fund services. It serves as a single access point for all our markets and asset types thereby offering multiple opportunities for asset consolidation. By harmonising our connectivity solutions, customers gain a comprehensive and transparent overview of their business activities.
ClearstreamXact provides customers a choice of connections to:
- Xact Web Portal, the User-2-Application (U2A) interface via the internet or a Virtual Private Network (VPN);
- Xact File Transfer, file transfer via internet or SWIFTNet FileAct; and
- Xact via SWIFT network – the link to connect to Clearstream via SWIFTNet FIN.
ClearstreamXact: Manage your business' securities portfolio at the touch of a button
Read more about our ClearstreamXact connectivity suite services and functionalities via our recent Xact brochures:
- XactConnectivity suite;
- Web Portal;
- Xact Web Portal settlement service; and
- Xact Web Portal collateral management service.
Perhaps readers will also enjoy considering to what extent banking connectivity innovation may represent the next quantum leap in the post trade world? Read Phil Brown's blogging on this topic.
Connectivity in our world is pretty much everything. It is our glue...Unsurprisingly, connectivity platforms in the banking industry are undergoing major modification in line with the current digital transformation we are experiencing – our own new connectivity suite ClearstreamXact is but one example.
Further information concerning ClearstreamXact, including on detailed functionality changes, technical specifications, migration approach and timelines will be provided in the course of the coming year to allow for appropriate customer understanding, preparation and a smooth business transition. For any questions in the meantime, please contact your Clearstream Relationship Manager.
The bigger picture
For a wider picture concerning our next steps for our OneClearstream service level, first: what is next after T2S? View Clearstream Holding CEO Marc Rober-Nicoud's video interview, which sets the scene.
Secondly on future steps: Clearstream will unfold its new asset servicing partnership model to offer the best possible asset services for settlement in the T2S environment. Clearstream, together with key partners, is currently developing a win-win asset servicing model for the T2S market environment (since T2S itself effectively decouples settlement from asset servicing).
Our asset servicing model will marry the expertise of all parties involved and allow customers to enjoy the best of both worlds through Clearstream: Settlement in both commercial and central bank money on the T2S platform, with local expertise for asset servicing via our local partnerships.
We currently plan to go live with our new asset servicing model in around Q1 2018.
Watch this space for news as we further roll out our OneClearstream integrated service offering!