Clearstream, LBBW and Vontobel complete first digital securities issuance in Germany
10 October 2022 Germany
Image: engel.ac
Clearstream has confirmed the creation of the first digital instruments on its D7 digital post-trade platform.
European issuers can now utilise the D7 infrastructure to issue digital securities, with LBBW and Vontobel conducting the first automated issuances in a process facilitated by Clearstream.
This announcement follows news, reported in SFT on 16 September, that the Deutsche Börse-owned company had completed successful tests with a group of pilot customers and is now ready to generate digital financial instruments in production.
With this development, Clearstream expects to provide a fully digital alternative to conventional physical issuance for approximately 80 per cent of German securities.
The scope of the D7 platform includes warrants and certificates, with additional asset classes and jurisdictions planned in line with future regulatory approvals.
Clearstream’s head of issuer services and new digital markets, Jens Hachmeister, says: “In line with our core mission to run innovative and future-proof infrastructures for our customers and the entire industry, we have now created the smart digital security. This moves issuance of structured products from days to minutes and enables our clients and partners to quickly adapt to the changing market environment.
“We are accelerating time to market and unlocking an entire new universe of product opportunities as we continue to venture towards fully digitised markets. In addition to a highly automated trading process, a digitalised and efficient issuance and settlement process is of great importance for the retail-certificate business.
Jan Krüger, head of equity markets at LBBW, adds: “With the first pilot issue of an LBBW bonus certificate via the D7 platform, accompanied by Clearstream, we are taking the next technologically important step towards end-to-end digitalisation."
Markus Schenk, Vontobel’s head issuance for Europe, Vontobel, comments: "The launch of the Digital Instrument represents a milestone on the way to a fully digital market infrastructure in Germany. The ability to bring our structured securities to market faster and more cost-efficiently in the future will ultimately have a positive impact on the client experience."
Deutsch Börse explains that, historically, German securities had to be issued as paper-based global notes and stored in a physical vault at the central securities depository, which usually took several days.
During 2021, the German regulator passed the electronic securities act, allowing dematerialised issuance and laying the ground for automation across securities lifecycle.
Deutsche Börse has been processing dematerialised securities via a central register since December 2021, its first live D7 component.
European issuers can now utilise the D7 infrastructure to issue digital securities, with LBBW and Vontobel conducting the first automated issuances in a process facilitated by Clearstream.
This announcement follows news, reported in SFT on 16 September, that the Deutsche Börse-owned company had completed successful tests with a group of pilot customers and is now ready to generate digital financial instruments in production.
With this development, Clearstream expects to provide a fully digital alternative to conventional physical issuance for approximately 80 per cent of German securities.
The scope of the D7 platform includes warrants and certificates, with additional asset classes and jurisdictions planned in line with future regulatory approvals.
Clearstream’s head of issuer services and new digital markets, Jens Hachmeister, says: “In line with our core mission to run innovative and future-proof infrastructures for our customers and the entire industry, we have now created the smart digital security. This moves issuance of structured products from days to minutes and enables our clients and partners to quickly adapt to the changing market environment.
“We are accelerating time to market and unlocking an entire new universe of product opportunities as we continue to venture towards fully digitised markets. In addition to a highly automated trading process, a digitalised and efficient issuance and settlement process is of great importance for the retail-certificate business.
Jan Krüger, head of equity markets at LBBW, adds: “With the first pilot issue of an LBBW bonus certificate via the D7 platform, accompanied by Clearstream, we are taking the next technologically important step towards end-to-end digitalisation."
Markus Schenk, Vontobel’s head issuance for Europe, Vontobel, comments: "The launch of the Digital Instrument represents a milestone on the way to a fully digital market infrastructure in Germany. The ability to bring our structured securities to market faster and more cost-efficiently in the future will ultimately have a positive impact on the client experience."
Deutsch Börse explains that, historically, German securities had to be issued as paper-based global notes and stored in a physical vault at the central securities depository, which usually took several days.
During 2021, the German regulator passed the electronic securities act, allowing dematerialised issuance and laying the ground for automation across securities lifecycle.
Deutsche Börse has been processing dematerialised securities via a central register since December 2021, its first live D7 component.
← Previous technology article
RMA: Regulators making it difficult for technology innovation in the US
RMA: Regulators making it difficult for technology innovation in the US
Next technology article →
Delta Capita extends Yield.io technology to customers through risk management partnership
Delta Capita extends Yield.io technology to customers through risk management partnership
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
