Clearstream to provide digital alternative to issuance of 80 percent of German securities

Rick Steves

Clearstream will provide a fully digital alternative to conventional physical issuance for approximately 80 percent of German securities, including warrants and certificates with further asset classes and jurisdictions planned in the future. 

Clearstream, Deutsche Börse’s post-trade service provider, has reached created a digital instrument on D7, Deutsche Börse’s digital post-trade platform, showing European issuers they can now leverage the new infrastructure to issue digital securities.

D7 is fully integrated within Clearstream’s global infrastructure and works as a connector between established networks and digital capabilities. LBBW and Vontobel have already performed the first automated issuances facilitated by Clearstream.

Same-day issuance and automated STP

German securities, which have been issued as paper-based global notes and stored in a physical vault at the central securities depository, were recently allowed by BaFin to be dematerialized, paving the way for automation in the securities lifecycle.

Representing electronic securities, the digital instrument contains all the relevant information needed throughout the lifecycle of a security, such as reference, listing and legal data, corporate actions and reporting information.

Smart digital securities enable same-day issuance, automated straight-through processing and asset servicing of securities across established and new financial networks and infrastructures. It serves as a facilitator to streamline operational efforts, minimise reconciliation needs and reduce overall risk.

Clearstream will provide a fully digital alternative to conventional physical issuance for approximately 80 percent of German securities, including warrants and certificates with further asset classes and jurisdictions planned in the future.

Milestone toward fully digital market infrastructure in Germany

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, commented: “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.”

Jan Krüger, Head of Equity Markets at LBBW, said: “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. 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, Head Issuance Europe, Vontobel, added: “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. We at Vontobel are proud to accompany the project from the very beginning and to provide valuable input. It was important for us to play our part in this significant market infrastructure project.”

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”