Clearstream, the post-trade services provider of Deutsche Börse Group, and Deutsche WertpapierService Bank AG (dwpbank), one of the largest securities services providers for Germany’s financial market, have entered into a strategic partnership regarding the settlement of securities in a post-TARGET2-Securities (T2S) world.
The goal of this long-term cooperation is to maximise the benefits from the ECB’s pan-European settlement platform T2S, which aims at harmonising and simplifying the settlement of securities across Europe. Following the final T2S migration wave, Clearstream will gradually roll out its T2S solution on a market-by-market basis, starting in March 2018. dwpbank will be among the first customers to benefit from this comprehensive offering.
Clearstream helps market participants to reduce the complexity and costs of their market connections by providing a centralised access to the T2S market, international markets and global markets. Its enhanced integrated T2S offering spans issuer, investor, and international CSD (ICSD), that is, settlement in commercial and central bank money via one single platform.
Philip Brown, Co-CEO of Clearstream Banking S.A., said: “We are developing innovative T2S-driven solutions in close cooperation with our clients. Our partnership with dwpbank shows that this strategy is paying off. Our post-T2S model allows dwpbank to fully profit from the advantages that T2S offers - from settlement and asset servicing to improved liquidity and collateral management.”
Markus Neukirch, COO of dwpbank, said: “It is of great importance to strengthen dwpbank’s network in order to further improve our service range to our customers. Reaching the next level in our long-lasting partnership with Clearstream supports our goal.”
dwpbank will also profit from Clearstream’s local market partner model, which combines the company’s global settlement expertise with the market knowhow of local agents. Furthermore, Clearstream’s post-trade offering is complemented by trading and clearing services of Deutsche Börse Group via Xetra and Eurex.