Clearstream, a provider of European post-trade services, has launched a new post-trade infrastructure processing environment. The firm says the new environment delivers real-time transaction processing across the full instruction life cycle throughout the daytime settlement period.
The new environment now treats all the steps of the transaction lifecycle that impact the efficiency of the market on a real-time basis. Clearstream claims this will not only benefit settlement, but also instruction validation, matching, domestic market instruction handling and feedback, instruction sequencing, provisioning, collateral allocation and substitution and customer reporting.
The new environment allows customers to optimise securities movements and collateral throughout the daytime processing period from 4:30 to 18:00 Central European Time. Clearstream claims that customers benefit from an accelerated and more efficient settlement processing without queuing times, and a reduced need for credit and collateral. The real-time settlement includes cash netting, securities netting and securities financing supporting the market in meeting the demands of the fast-expanding lending and repo market.
The firm states that settlement deadlines have been improved for securities in 36 domestic markets worldwide. As there are two or three different deadlines per market, 98 deadlines have been improved in total. Cash instruction deadlines have also been improved for 26 currencies, including the euro deadline via TARGET2. Corporate action processing in domestic markets has also been upgraded.
Customers will have no migration cost and no change of communication interface, Clearstream says, because the system runs on the firm’s Creation settlement engine. It adds that instruction management information is immediately available across multiple communication channels, so customers will be able to monitor pre-settlement transactions and take action to ensure timely settlement.
“Clearstream’s new offering brings the benefits of real-time processing to all aspects of the transaction life cycle,” explains Jeffrey Tessler, CEO, Clearstream. “The successful launch of the latest generation of Creation demonstrates Clearstream’s commitment to interoperability and to raising the level of market efficiency.”