Clearstream, the International Central Securities Depository, part of Deutsche Boerse Group, is introducing a new fee structure for Internal* and Bridge** settlement transactions that aims to provide large volume customers with substantial economies of scale.
Customers will benefit from a unified tariff structure for combined Internal and Bridge settlement volumes with one set of fees calculated on a sliding scale combining both debt and equity instruments across all 45 markets offered by Clearstream.
The new structure will provide large volume customers with marginal pricing as low as EUR 0.02 per instruction allowing them to save up to 30 percent in settling instruments not only internally at Clearstream but also over the Bridge with Euroclear Bank counterparties.
The new fee structure will be introduced in November and builds on the continuous improvements Clearstream is making to its real-time settlement services.
In March, Clearstream launched its new generation of processing environment by delivering real time settlement in concert with permanent settlement optimisation.Services benefiting from the change include also instruction validation, matching, domestic market instruction handling and feedback, instruction sequencing, provisioning, collateral allocation and substitution and customer reporting.
In July, a second phase of improvements to the Bridge was launched increasing settlement opportunities with the addition of five new file exchanges of settlement-related information (from 10 to 15 times per day). The improvements also provide more timely and frequent transaction-repair and fail-management information to clients as a result of ten new exchanges of transaction matching files (from 20 to 30 times per day). The settlement opportunities made possible by the Bridge give customers full access to any counterparty with an ICSD account throughout the settlement day at a cost equal to that of an internal settlement instruction.
Mark Gem, Head of Business Management and Member of the Executive Management at Clearstream said: “Effective interoperability is Clearstream’s objective and our new fee schedule reflects this, in addition to offering extremely low marginal prices, there is no longer a distinction between the price of an internal and a Bridge instruction”.
* An Internal Transaction is a transaction between two Clearstream customers/accounts
** A Bridge Transaction is a transaction between a Clearstream customer/account and a customer/account of Euroclear via the electronic Bridge between the two ICSDs
