Asset servicing partnership model
Clearstream is unfolding 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 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 marries the expertise of all parties involved and allows 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.
OneCMS, our OneClearstream collateral management service, went live in November 2017, following the first successful collateral allocation on behalf of a customer.
OneCMS represents the collateral management arm of our offering in T2S. Enabling full triparty interoperability between Clearstream’s CSD and ICSD, a single collateral management system manages our customers’ entire collateral pool across CSD and ICSD accounts, resulting in an optimised use of collateral and improved liquidity management.
Under the current set-up, assets held at the CSD can be automatically mobilised for use at the ICSD. We plan to launch the next phase of OneCMS in the near-future, where the CSD will offer “ICSD like” collateral management services settling in T2S.
OneCMS uses Cmax, the well-known and proven ICSD collateral management technology.
LuxCSD's enhanced service offering
LuxCSD's new Investor-CSD solution for T2S-eligible securities provides customers with a single point of access, in Central Bank Money, to all T2S markets (with comprehensive instruments coverage).
The service is being activated on a market-by-market basis with access to the first market, German, available since October 2017. LuxCSD customers are 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 launched in June 2017 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 connectivity suite, ClearstreamXact - our 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 with 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 blog from April 2017.
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.