Clearstream celebrates 40 years
28 September 2010 Frankfurt
Image: Shutterstock
The international central securities depository (ICSD) Clearstream (previously Cedel) has reached its 40th birthday. It was founded on 28 September 1970 by 66 financial institutions from 11 countries to reduce the costs and risks of settling securities in the Eurobond market. Settlement and safekeeping of Eurobonds is still Clearstream's core business, accounting for 47 per cent of its revenues, and with a market share of 37 per cent (August 2010).
The post-trade business is sometimes referred to as the "plumbing of the financial system". Indeed and simply put, it is about a worldwide network of tubes through which securities are transferred in return for cash between banks, exchanges or other clients and a large depository. In essence, Clearstream handles the property rights of the participants of the worldwide financial markets when it is looking after, eg, dividends and stock splits are being booked and securities are correctly entered into the account of the clients.
Clearstream started as a provider of the post-trade infrastructure for the Eurobond market. As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a growing number of markets in Europe. But Clearstream also offers additional services in the areas of cross-border custody, investment funds services and global securities financing where it is one of four global providers of collateral management services.
Jeffrey Tessler, CEO Clearstream, said: "Clearstream's goal was and continues to be to bring simplicity to the post-trade services industry by offering the complete range of our services through a single window. We will take advantage of the emerging European market infrastructure and will continue to build competitiveness in the cross-border securities processing area through interoperability and partnerships."
The post-trade business is sometimes referred to as the "plumbing of the financial system". Indeed and simply put, it is about a worldwide network of tubes through which securities are transferred in return for cash between banks, exchanges or other clients and a large depository. In essence, Clearstream handles the property rights of the participants of the worldwide financial markets when it is looking after, eg, dividends and stock splits are being booked and securities are correctly entered into the account of the clients.
Clearstream started as a provider of the post-trade infrastructure for the Eurobond market. As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a growing number of markets in Europe. But Clearstream also offers additional services in the areas of cross-border custody, investment funds services and global securities financing where it is one of four global providers of collateral management services.
Jeffrey Tessler, CEO Clearstream, said: "Clearstream's goal was and continues to be to bring simplicity to the post-trade services industry by offering the complete range of our services through a single window. We will take advantage of the emerging European market infrastructure and will continue to build competitiveness in the cross-border securities processing area through interoperability and partnerships."
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
