Clearstream, the international central securities depository (CSD) owned by Deutsche Börse, has teamed up with Brazilian financial services firm, Itaú Unibanco, to facilitate settlement in the Brazilian market for international investors.
The new service, which went live on 21 January, offers settlement and custody services across asset classes, denominated in Brazilian reals. Clearstream clients will be able to develop post-trade links to Brazil, using the solution as their single point of access, using Itaú Unibanco as their sub-custodian.
“The new settlement link will allow the large international investor base to more easily access the Brazilian market. We believe that our in-depth knowledge of the Brazilian and South American financial markets gives assurance that Clearstream clients will be provided the best possible service on site,” said Ricardo Lima Soares, director of the capital markets solutions group at Itaú Unibanco
“The settlement link to Brazil is key in light of our BRIC strategy and an important additional element to our presence in Brazil where we have already developed a collateral management solution for the local market,” added Mark Gem, member of the executive board and head of network management, Clearstream. “We are pleased to be the first European market infrastructure provider to launch a post-trade service for Brazil with Itaú Unibanco as local partner who best knows the requirements of this very large and segregated market.”
Clearstream's settlement network now covers 50 domestic markets across the world. The CSD is also working on establishing a link to India to complete its offering to the BRIC markets. In Brazil, Clearstream also partnered with the local CSD CETIP in June 2010 to to jointly develop and distribute triparty collateral management services across timezones.