UBS' decision to consolidate the majority of its securities custody, settlement, and financing business at Clearstream as primary International Central Securities Depository (ICSD) follows an intensive 18-month assessment.
The review included the global securities business of UBS' Investment Bank and Wealth Management.
The process was inspired by UBS' goal to realise front to back synergies between its Investment Bank and Wealth Management businesses, whilst integrating these operationally into their recently formed Group Operations structure and achieving further scale benefits. Among the key decision criteria were strategic fit, flow consolidation and global securities financing services including Clearstream's Global Liquidity Hub for integrated securities lending, borrowing and collateral management services.
As a consequence, UBS Group aims to transfer the majority of its global Investment Bank business to Clearstream who already service its Wealth Management business. UBS and Clearstream are working together to ensure a smooth transfer of assets ensuring minimum disruption for underlying customers. The phased migration is planned for late 2013.
Ulrich Hoffmann, UBS Head of Group Operations, commented: "Our decision to appoint Clearstream as UBS' primary ICSD helps create synergies across the UBS Group. This is consistent with our Group Operations' strategy to further simplify, align, and consolidate our network and post trade processing, across all business divisions where possible."
Jeffrey Tessler, CEO Clearstream, commented: "We are delighted to expand our longstanding partnership with UBS Wealth Management to now also encompass UBS Investment Bank. The entire market is under unprecedented regulatory and commercial pressure and we are working hard to offer our customers the right solutions so that they can position themselves well for the future, such as via improved collateral management services. We are pleased UBS sees the value in our proposal and look forward to an even deeper partnership with UBS Group. UBS' decision confirms that our business strategy is headed in the right direction."