UBS has appointed Clearstream as its primary International Central Securities Depository (ICSD), in a move that will consolidate the majority of its securities custody, settlement, and financing business.
Following an intensive 18-month assessment, which included a review of the global securities business of UBS’ investment bank and wealth management business, the bank decided to realise front to back synergies using Clearstream.
It cited a strategic fit, flow consolidation and global securities financing services including Clearstream’s Global Liquidity Hub for integrated securities lending, borrowing and collateral management services, as key reasons for the decision.
UBS Group aims to transfer the majority of its global investment bank business to Clearstream, who already services its wealth management business.
The phased migration is planned for late 2013.
Ulrich Hoffmann, UBS’s head of group operations, said: “Our decision to appoint Clearstream as UBS’ primary ICSD helps create synergies across the UBS Group. This is consistent with our group operations’ strategy to further simplify, align, and consolidate our network and post trade processing, across all business divisions where possible.”
Jeffrey Tessler, CEO Clearstream, said: “The entire market is under unprecedented regulatory and commercial pressure and we are working hard to offer our customers the right solutions so that they can position themselves well for the future, such as via improved collateral management services.”
