Clearstream’s August 2014 Figures

6 percent increase in assets under custody as compared to August 2013
Clearstream continues solid growth rate in all business streams
Philip Brown: “Banks need to mobilise now to reap the full T2S benefits”

Business stream 1: Custody

In August 2014, the overall value of assets under custody held on behalf of customers registered an increase of 6 percent to EUR 12.2 trillion (compared to EUR 11.6 trillion in August 2013).

Securities held under custody in Clearstream’s international business as international central securities depository (ICSD) increased by 6 percent from EUR 6.1 trillion in August 2013 to EUR 6.5 trillion in August 2014.

Securities held under custody in the German central securities depository (CSD) increased by 5 percent from EUR 5.4 trillion in August 2013 to EUR 5.7 trillion in August 2014.

For the period year-to-date August 2014, the combined value of assets under custody in the German domestic CSD and global ICSD business increased by 5 percent compared to the same period last year (YTD August 2014: EUR 12.1 trillion; YTD August 2013: EUR 11.5 trillion).

Business stream 2: Settlement

In August 2014 as in August 2013, 3.1 million international (ICSD) settlement transactions were processed. Of all international transactions, 84 percent were OTC transactions and 16 percent were registered as stock exchange transactions.

On the German domestic market, CSD settlement transactions in August 2014 reached 6.5 million, stable compared to August 2013 (6.5 million). Of these transactions, 64 percent were stock exchange transactions and 36 percent OTC transactions.

For the period year-to-date August 2014, the number of settlement transactions (OTC and stock exchange combined) processed for the German domestic CSD and global ICSD business combined increased by 2 percent compared to the same period last year (YTD August 2014: 83.2 million; YTD August 2013: 81.4 million). The Investment Funds Services business contributed to this growth in the ICSD business as its corresponding transactions registered a 10 percent increase.

Business stream 3: Global Securities Financing

For Global Securities Financing (GSF) services, the monthly average outstanding in August 2014 reached EUR 613.0 billion. The combined services, which include triparty repo, securities lending and collateral management, collectively experienced an increase of 9 percent over August 2013 (EUR 562.6 billion).

The GSF monthly average outstanding has grown by 5 percent from the period year-to-date August 2013 (EUR 570.8 billion) to the period year-to-date August 2014 (EUR 597.9 billion).

Business stream 4: Investment Funds Services

Investment Funds Services (IFS) processed 0.7 million transactions in August 2014, a 10 percent increase over August 2013 (0.6 million).

IFS transactions have grown by 10 percent from 5.2 million processed in the period year-to-date August 2013 to 5.7 million in the period year-to-date August 2014.

Commentary:

Philip Brown, Head of Global Client Relations and Member of the Executive Board of Clearstream, said: “One of our mandates as market infrastructure is to support our clients in the transition to the future European post-trade environment with TARGET2-Securities. In August we have therefore been validating with selected customers the most recent T2S findings in a study we commissioned to Oliver Wyman and that is out now: Banks can generate additional savings between EUR 30 and EUR 70 million annually if they leverage the T2S model to their advantage, but they need to mobilise now to reap the full T2S benefits. Our August figures show that our customers increasingly mobilise on their journey towards T2S-readiness, with Clearstream as reliable partner. Our growth rates across all business areas tell us that our customers find the guidance they are looking for with Clearstream.”

Core business figures

	August 2013	August 2014
Settlement transactions (in millions)
OTC	2.59	2.59
Stock Exchange	0.52	0.51
International	3.11	3.09
OTC	2.25	2.30
Stock Exchange	4.23	4.16
Domestic	6.48	6.46
Total	9.58	9.56

Assets under custody (in EUR trillion)
Total	11.58	12.22
International	6.14	6.51
Domestic	5.44	5.71

Study: The T2S Opportunity - Unlocking the hidden benefits of TARGET2-Securities pdf 2206 KB