Clearstream is set to offer post-trade services to DekaBank, the securities services provider of the German Savings Banks Finance Group.
The services include settlement, custody and asset servicing for its European securities markets activities.
DekaBank said that Austria is the first market to be processed via Clearstream’s investor central securities depository (CSD) model.
Eurobonds, Belgium, the Netherlands, France, Italy, Spain and other markets are to follow in 2020 and 2021.
The investor CSD model aims to allow DekaBank to pool its assets across the connected platforms of Clearstream’s German CSD and its international CSDs, thereby increasing liquidity and allowing for seamless transfer between CSD and ICSD counterparties with no dependency on local market infrastructures.
According to Clearstream, DekaBank will reduce settlement-related exposures, pool collateral for settlement and triparty purposes, net more cash settlements and create operational efficiencies.
Clearstream added that DekaBank will “reap significant benefits” from consolidating assets in central bank money via its own dedicated cash account.
Furthermore, it creates a single settlement location for DekaBank’s exchange-traded and over-the-counter, cleared and non-cleared activities.
