20 August 2017
Find out more

Euroclear and Clearstream build Bridges

30 July 2003  |  7969 views  |  0 Euroclear and Clearstream build Bridges

Euroclear Bank and Clearstream International have announced the development of a new, automated, daytime Bridge between the two international central securities depositories (ICSDs).

The 'Bridge' is an electronic communications link for the settlement of securities transactions between counterparties in Clearstream Banking Luxembourg and Euroclear Bank.

This new development will supplement the existing overnight electronic Bridge and will replace the manually operated daytime Bridge that currently links the two ICSDs and will allow for same-day Bridge transactions. The launch timetable is targeted in two phases during 2004 to ease implementation.

Phase one of the upgrade, scheduled for implementation in June 2004, will improve settlement efficiency of Bridge transactions in general, say the depositories. Clients will be able to settle a wider range of securities transactions by being able to re-deliver securities from many more local markets across the Bridge during the day. The upgrade will also allow clients to reduce their financing costs by having more opportunities to settle Bridge transactions that failed during the overnight process.

Phase two, targeted for launch in November 2004, will allow same-day settlement of trades over the Bridge, and in particular, repo and securities financing transactions between ICSD counterparties. This phase will extend Bridge instruction input deadlines into the daytime (from 20:30 the evening before settlement date to 13:30 on settlement date) and will provide the means for same-day distribution of new issues during the daytime over the Bridge.

As an interim measure, the two ICSDs have also agreed to implement enhancements to the existing manually operated daytime Bridge. With effect from November 2003, the limit on the number of instructions that can be handled manually will be increased. Instructions with a market value in excess of EUR1 million that have failed to settle during the overnight settlement process will be eligible for daytime delivery. In addition, new same-day instructions for transactions with a market value in excess of EUR5 million will also become eligible at that time.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Clearstream launches fee-free overnight bond borrowing programme

Clearstream launches fee-free overnight bond borrowing programme

03 July 2003  |  3761 views  |  0 comments
Clearstream flows smoothly in Swift STP review

Clearstream flows smoothly in Swift STP review

22 May 2003  |  4621 views  |  0 comments
European Commission finds against Clearstream

European Commission finds against Clearstream

31 March 2003  |  4824 views  |  0 comments
Clearstream and Euroclear extend bridge links

Clearstream and Euroclear extend bridge links

13 November 2001  |  5156 views  |  0 comments
Euroclear and Clearstream cross the bridge

Euroclear and Clearstream cross the bridge

30 November 2000  |  3702 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9146 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7899 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7350 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
6600 views 0 | 1 tweets | 1 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6514 views 1 | 5 tweets | 3 linkedin

Featured job

Find your next job