Clearstream, the international central securities depository (ICSD) within Deutsche Börse Group, will open two new links with Latvia and Lithuania helping foreign investors to access these markets.
Government bonds, corporate bonds and equities settled via an account at SEB banka, Riga/Latvia or SEB Bankas, Vilnius/Lithuania respectively will be eligible for settlement and custody in Clearstream Banking. The new service will be offered through Clearstream Banking's agent for the Estonian domestic market, AS SEB Pank, Tallinn/Estonia. Transactions against payment in Euro in the Lithuanian market will also be eligible in Clearstream Banking shortly after the implementation of the link. Both Latvia and Lithuania are candidates to entering the Eurozone and to joining the currency union.
Janis Pone, Deputy Treasurer of Treasury of the Republic of Latvia, said: "We see this new link as a good solution to broaden the existing investor base for Latvian government domestic securities. This may definitely ensure non-residents across Europe to find interest and easy access to our local debt market."
Ulf Noren, Global Head of Sub-Custody at SEB, GTS Banks, said: "We are very pleased to support Clearstream in the extension of its network to cross-border markets by adding Latvia and Lithuania to the long standing links to Sweden and Estonia. We will help Clearstream to successfully navigate the complete Baltic securities region. We believe that this step will bring international clients closer to the Baltic markets and raise their awareness for the markets and the modern securities environment that has developed in this region over the years."
Mark Gem, Head of Network Management at Clearstream, said: "We are pleased to add Latvia and Lithuania to our global network. Clearstream is the only ICSD to cover the Baltics - the new links demonstrate Clearstream's commitment to facilitate market openness. We will continue to create solutions in response to customer and market needs which is why Brazil and India, among other markets, are next on our agenda."
With this addition, Clearstream's network now reaches 49 domestic markets around the globe: 32 in Europe, 5 in the Americas, 10 in the Asia Pacific region and 2 in Middle-East and Africa. It is the widest network of any ICSD and enables counterparties in local markets to efficiently settle eligible securities through Clearstream's operational hub in Luxembourg.