Clearstream has signed the first customer who will explore the full potential of its Cross Border Services (XBS) offering, the first pan-European cross-border settlement solution in central bank money.
The XBS service suite was expanded from over-the-counter (OTC) settlement to the settlement of trades from selected stock exchanges. biw Bank für Investments und Wertpapiere AG is now a market maker at Wiener Börse AG using Clearstream Banking Frankfurt (CBF), the German central securities depository (CSD), as settlement agent. More than 80 Clearstream customers around Europe already use components of the XBS service.
In line with customer demand, the initial focus of the XBS offering is on selected international markets (Germany, Switzerland, Austria, France, Belgium, the Netherlands, Denmark, Spain) that represent roughly 70 percent of the European cross-border settlement flows. Seamless interoperability between the markets gives the investor the opportunity to choose the most efficient and robust settlement location. Through XBS, Clearstream provides high volume standardized cross-border services for clearing, settlement and custody which enable straight through processing (STP) in a real-time environment for customers. XBS delivers the efficiencies to be created through the TARGET2-Securities (T2S) initiative years ahead of its launch in September 2014, including streamlined distribution of cross-border transactions and cost-efficient settlement.
Andreas Wolf, CEO of Clearstream Banking Frankfurt and Head of Product Development & Business Strategy of Clearstream International, said: "Clearstream will be the European hub for cross-border processing in central bank money. Our strategy, based on partnerships and interoperability, will bring the efficiencies of the international Eurobond environment to the domestic markets and to all asset classes, thus anticipating future regulatory requirements. Our XBS standard services will continue to evolve to meet the needs of our customers. We are delighted to welcome biw AG as first user to take advantage of the full potential of XBS."
Dirk Franzmeyer, member of the Executive Board of biw, said: "Thanks to XBS, we were able to become a member of the Austrian stock exchange, Wiener Börse AG, without having to invest in a new, costly settlement infrastructure. We simply leverage our domestic link with Clearstream. On this basis, we can now offer our customers efficient and streamlined access to European markets and the safety level that Clearstream Banking Frankfurt provides as CSD whilst maintaining a lean back office infrastructure."
Clearstream Banking Frankfurt (CBF) delivers a high degree of standardised services with a strong focus on the domestic market business which is characterised through high volume processing with standard service levels. XBS takes place within the safety of CBF as world-class CSD which has extremely robust systems, real-time processing, best-in class exception management and a proven legal environment for asset protection.