Clearstream and Bundesbank act to reduce liquidity risk
26 November 2003 | 4016 views | 0
Clearstream has partnered with the Deutsche Bundesbank and other EU central banks to offer access to central bank money for foreign traders clearing cross-border securities transactions through the German markets.
Under the model, non-German participants make liquidity available for the German market by means of deposits in cash or securities at their national central bank, which submits a cross-border guarantee to the Bundesbank.
Matthias Ganz, CEO of Clearstream Banking Frankfurt, says the model "contributes to a level playing field by making the same access to central bank money available to domestic and foreign participants in cross-border transactions."
Two central banks, along with Deutsche Bundesbank, are currently offering the service.