Euroclear and Clearstream are enhancing the existing automated daytime 'bridge' between the two securities depositories to increase the capacity for same-day transaction settlement and securities financing.
The 'bridge' is an electronic communications link for the settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank.
The service is being upgraded to improve overall settlement efficiency for respective clients and increase the capacity for same-day transaction settlement and securities financing.
Phase one of the upgrade, scheduled for implementation in January 2007, will increase settlement opportunities - particularly for trades settling on T+0 - for clients with the addition of three new file exchanges of settlement related information in the afternoon (from seven to 10 times per day).
This first enhancement to the daytime bridge will also provide more timely and frequent transaction-repair and fail-management data to clients as a result of three new exchanges of transaction matching files (from 17 to 20 times per day), as well as extend instruction input deadlines for clients by more than one hour for key settlement cycles during the day.
Jeffrey Tessler, CEO, Clearstream, says: "This programme of improvements will benefit clients by allowing them to use the infrastructure to efficiently support their trading and collateral management activities."
The rival European depositories says they are committed to making continuous improvements to the bridge in order to provide users with fast, efficient and reliable settlement.