Clearstream And LCH.Clearnet Implement New Settlement Route - Enhancing STP Rates And Improving Market Efficiency

Clearstream Banking Frankfurt announced today that, together with LCH.Clearnet, it has introduced an automated settlement route for OTC German Government debt transactions. The routing process for settlement instructions generated by LCH.Clearnet on behalf of its members to be forwarded to Clearstream Banking Frankfurt for settlement, will be automated achieving 100 percent straight-through processing rates.

This new development will result in substantial benefits for members of both institutions. Customers holding their securities assets with Clearstream Banking Frankfurt will no longer need to instruct Clearstream Banking Frankfurt, therefore reducing their operating costs and eliminating any matching issues. This new process will offer Clearstream Banking Frankfurt customers an additional way to optimise the use of assets held in safe-custody.

Matthias Ganz, Chief Operating Officer of Deutsche Börse Group said, "This is a further example for Clearstream's commitment to facilitate market openness and to create efficient solutions in response to customer and market needs. This new development will not only ease settlement of LCH.Clearnet transactions, but also contribute to improve the efficiency of the entire clearing and settlement industry".

Clearstream is now a settlement location for 22 trading platforms and Central Counterparties (CCP), in addition to the trading platforms and CCP run by the Deutsche Börse Group. The link with LCH.Clearnet follows two similar routes opened in the fourth quarter 2003 to BrokerTec and MTS Deutschland.