Nasdaq CSD has appointed Clearstream as its single gateway to access all T2S markets
Clearstream’s leading investor CSD solution offers access to securities eligible in TARGET2-Securities (T2S). The Nasdaq CSD Group operates regional CSDs in the Baltics and Iceland. In a pioneering co-operation, 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.
Key benefits
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
Increasing market reach
Both Clearstream and Nasdaq are taking steps to remove post-trade services barriers in Europe to deliver cross-border efficiencies and reduce costs for investors and corporates.
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.”
“Nasdaq CSD continues to lead in facilitating interconnectivity within European markets and connecting companies and investors in our region to the broader European financial system. This pioneering collaboration with Clearstream not only provides immediate benefits to both Baltic investors and Nasdaq CSD participants but also represents a significant step towards more integrated financial markets in Europe,” says Indars Aščuks, CEO of Nasdaq CSD.
About Nasdaq
Nasdaq (NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at nasdaq.com.
About Clearstream
Clearstream provides the innovative and trusted post-trade infrastructure for global markets. It runs the leading securities and funds servicing ecosystems of tomorrow.
The company operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market. With more than 18 trillion Euros in assets under custody, it is one of the world’s largest settlement and custody firms for domestic and international securities.
It also delivers premier fund execution, distribution, data and reporting services, covering over 55 fund markets worldwide.
Clearstream is part of Deutsche Börse Group, an international exchange organisation and provider of innovative market infrastructures.