Clearing firm LCH.Clearnet and securities depository Clearstream have introduced an automated settlement route for OTC German Government debt transactions.
Clearstream Banking Frankfurt - part of the Deutsche Börse Group - will provide automated settlement services for LCH.Clearnet customers, which it says will result in 100% straight-through processing (STP) rates.
As settlement is fully automated, trading parties will no longer need to issue instructions, which in turn reduces operating costs and eliminates any matching issues.
Matthias Ganz, COO of Deutsche Börse Group, says: "This new development will not only ease settlement of LCH.Clearnet transactions, but also contribute to improve the efficiency of the entire clearing and settlement industry."
Clearstream is now a settlement location for 22 trading platforms and central counterparties (CCP), in addition to the those run by the Deutsche Börse Group. The link with LCH.Clearnet follows two similar routes opened in 2003 to BrokerTec and MTS Deutschland.