Nasdaq CSD has chosen to access the T2S markets via Clearstream’s German central securities depository (CSD).
With this additional link to the German CSD, Nasdaq CSD SE will act as a technical issuer CSD via Clearstream’s cross-CSD links. Nasdaq CSD participants in the Baltics will be able to receive and deliver T2S-eligible securities from and to any T2S counterparty, in full straight-through processing (STP) mode, free of payment (FOP) or against payment (DVP) in central bank money.
Moreover, Nasdaq CSD participants in the Baltics will be able to reach counterparties in Clearstream’s ICSD and Euroclear Bank.
The co-operation of the two CSDs offers participants the following benefits:
- Streamlined connectivity: Single, efficient gateway to T2S markets
- Reduced complexity: No need to develop and maintain multiple links, harmonised asset servicing across T2S CSDs
- Mitigated risk: Settlement transactions in central bank money (CeBM) using dedicated cash accounts (DCAs)
- Optimised collateral management: Greater collateral mobility and efficiency, benefits from Clearstream’s links to other securities settlement systems (SSSs) to mobilise ECB-eligible marketable assets for Eurosystem credit operations
- Enhanced liquidity management: Deeper liquidity pool through T2S
Samuel Riley, CEO of Clearstream Securities Services, comments:
“Clearstream and Nasdaq share the strong commitment to connecting markets globally. This co-operation has created a precedent for CSDs to explore the capabilities of Clearstream’s investor model and to demonstrate the interoperability of our ICSD and CSD services. The move allows Nasdaq CSD to offer its participants access to a trusted link network that fulfills the entire range of regulatory and compliance requirements surrounding CSDR whilst providing an efficient, flexible platform.”
