Euronext Securities has entered into an agreement with Clearstream to provide asset services to Clearstream Banking AG as Investor CSD for the Danish market. This agreement, built on long-term cooperation between the two infrastructures, will facilitate access to Danish capital markets.
Direct participation and CSD collaboration to benefit capital markets
The new agreement reflects Euronext Securities’ ambition to expand its added-value services and the demand of shortening the value chain in the post-trade industry.
“Across Europe, we’re seeing a growing trend that the value chain between issuers and investors can get shorter, notably with more direct connections between CSDs.” said Pierre Davoust, Head of CSDs at Euronext. “There are advantages to accessing the market directly, such as more transparency, lower operational risk, and some of our customers prefer this approach. We’re responding to this trend by expanding our existing portfolio of asset services and, in time, we can see this becoming a pan-Nordic offering for our customers that choose to go this route,” he comments. “This partnership further illustrates the strategic priority to pan-Europeanise and scale up our CSDs announced last November, as part of the Euronext strategic plan Growth for Impact 2024”.
Building on a successful partnership
Pierre Davoust points to Euronext Securities’ long-standing and successful relationship with Clearstream as one of the key factors enabling this new agreement. “Euronext Securities and Clearstream have had a successful partnership for the past 13 years in Denmark. We’re pleased that we can now build on this relationship through this agreement with Clearstream Banking AG.”
Part of a larger strategic objective
For Clearstream, this new agreement is part of a larger strategic initiative to create a more efficient operational set-up through direct market access, as Sam Riley, Head of Investor Services & Financing at Clearstream, elaborates: “Our Investor-CSD model offers access to T2S-in and -out markets, as well as to the international markets via a central access point. It is designed to improve our customers’ operational efficiency and to reduce operational and counterparty risk. Connecting directly to the comprehensive asset services of various CSDs allows us to offer our customers the set-up and securities service quality they seek – as we are doing now with Euronext Securities. We look to further broaden this engagement, both in Europe and beyond. Ultimately, this is one supporting building block to increase the efficiency of the European capital markets.”
For more information about Clearstream, go to www.clearstream.com