NO 246 – AUGUST 2013

WFE Focus
Post trade

Clearstream reinforces ties with Latin America

Clearstream has taken an important step in strengthening its ties with Latin American financial markets by signing Latin Clear Panama as the first transfer agent to join its investment funds platform, Vestima. Accordingly, in the course of July 2013, investment funds domiciled in Panama will be eligible for order routing, settlement and custody at Clearstream.

European organizations to boost triparty repo settlement interoperability

Clearstream, Euroclear, and Eurex Clearing signed a Memorandum of Understanding with ICMA European Repo Council which engages the three post-trade infrastructure providers in a joint project enabling their systems to work together to increase the efficiency of the repo market. Pending completion of detailed feasibility studies and market consultation, triparty settlement interoperability is envisaged to be delivered by the end of 2015. A triparty repo is a transaction for which collateral selection and substitution, valuation, settlement and custody during the life of the repo transaction is outsourced by the two trading parties to a third-party agent. Establishing triparty settlement interoperability will improve the movement of collateral between the connected settlement locations in Europe.

ICE Clear Europe to launch client clearing for index and single name CDS

ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange, will introduce client clearing for European CDS after receiving regulatory approval in the UK and US. The client clearing solution for European CDS is expected to launch on 7 October 2013 and will be available for 43 European index and 121 corporate single name CDS instruments.

London Stock Exchange Group to expand CSD services

The London Stock Exchange Group is in the process of establishing a new Central Securities Depository in Luxembourg. It will provide a full range of custody and settlement services and will build on the existing infrastructure of the Group’s Italian CSD, Monte Titoli. The new CSD will operate an open-access model and will enable customers to meet changing regulatory obligations, such as the European Market Infrastructure Regulation.

London Stock Exchange Group selected as technology partner by Argentinian CSD

The London Stock Exchange Group has been selected as the business development and technology partner by the Argentinian Central Securities Depository (CSD). MillenniumIT, LSEG’s proprietary technology company, will supply capital markets technology across asset classes, including its ultra-low latency, highly scalable trading platform, Millennium Exchange. The LSEG will also provide a range of other ancillary services to help further develop the Argentinian capital markets.