Clearstream:
- Chairman Jeffrey Tessler calls for certainty on T2S migration schedule
- Deutsche Börse Group sets strong focus on its EMIR solutions
The International Central Securities Depository Clearstream is well on track for its connection to the pan-European platform for securities settlement, TARGET2-Securities (T2S). Following the postponement of the T2S migration plan, Chairman Jeffrey Tessler calls for certainty on the new schedule, which currently provides Clearstream to be connected on February 6th, 2017 – pending further approval by the European Central Bank (ECB).
“The T2S project is back on track after a period of uncertainty that was costly for everyone”, Tessler said. “We are now waiting for the ECB Governing Council to confirm the new migration plan and hope that there will be no further delays so that we can migrate according to the new schedule.”
Clearstream already started testing and implementing its T2S IT functions in 2014. Therefore, many of the T2S components are already in production. “In principle we do not welcome any delay of the T2S schedule”, Tessler said. “However, we favour migration scenarios that ensure a stable platform and that keep the migration risk at an absolute minimum.”
Meanwhile, as part of Deutsche Börse Group, Clearstream is maintaining a strong focus on supporting its clients to fulfill their requirements under the European Markets Infrastructure Regulation (EMIR). “Currently, one of the topics we are strongly focussing on is EMIR. With mandatory OTC Clearing starting in June and new collateral requirements for non-centrally cleared transactions in September, our clients face significant new challenges”, said Tessler, who is also responsible for Deutsche Börse`s clearing house Eurex Clearing. “The time for action is now”, he added, advising market participants to already start preparing for the new requirements.
Business stream Custody
In February 2016, the overall value of assets under custody held on behalf of customers registered a decrease of 2 percent to EUR 12.9 trillion (compared to EUR 13.2 trillion in February 2015).
Securities held under custody in Clearstream’s international business as international central securities depository (ICSD) increased by 3 percent from EUR 6.9 trillion in February 2015 to EUR 7.1 trillion in February 2016.
Securities held under custody in the German central securities depository (CSD) decreased by 7 percent from EUR 6.2 trillion in February 2015 to EUR 5.8 trillion in February 2016.
For the period year-to-date February 2016, the combined value of assets under custody in the German domestic CSD and global ICSD business remained at the same level compared to the same period last year (YTD February 2016: EUR 13.0 trillion; YTD February 2015: EUR 13.0 trillion).
Business stream Settlement
In February 2016, 3.7 million international (ICSD) settlement transactions were processed, a 6 percent decrease over February 2015 (3.9 million). 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 February 2016 reached 7.9 million, 2 percent more than in February 2015 (7.8 million). Of these transactions, 65 percent were stock exchange transactions and 35 percent OTC transactions.
For the period year-to-date February 2016, the number of settlement transactions (OTC and stock exchange combined) processed for the German domestic CSD and global ICSD business combined decreased by 6 percent compared to the same period last year (YTD February 2016: 22.2 million; YTD February 2015: 23.5 million).
Business stream Global Securities Financing
For Global Securities Financing (GSF) services, the monthly average outstanding in February 2016 reached EUR 532.7 billion. The combined services, which include triparty repo, securities lending and collateral management, collectively experienced a decrease of 15 percent over February 2015 (EUR 629.5 billion).
The GSF monthly average outstanding has contracted by 15 percent from the period year-to-date February 2015 (EUR 616.0m) to the period year-to-date February 2016 (EUR 526.3 billion).
Business stream Investment Fund Services
Investment Fund Services (IFS) processed 0.75 million transactions in February 2016, an 11 percent decrease over February 2015 (0.85 million).
IFS transactions have contracted by 12 percent from 1.7 million processed in the period year-to-date February 2015 to 1.5 million in the period year-to-date February 2016.
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