Clearstream accepts central banks and AML-regulated credit institutions (such as regulated banks) as customers. Clearstream does not accept natural persons as customers and no account is opened in the name of a natural person.
Clearstream has operational centres in Cork, Cardiff, Luxembourg, Prague, and Singapore. It also maintains representative offices in London, Hong Kong, Tokyo, Dubai, New York, and Zurich.
Clearstream is responsible for the management, safekeeping/custody and administration of securities (assets) under custody. Services include income and redemption payments, corporate actions as well as tax and proxy voting.
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The majority of securities safekept by Clearstream are immobilised. Securities are reflected in book-entry form in the accounts of customers at Clearstream regardless of whether they are held in physical or dematerialised form. This means that they are no longer represented by physical certificates, but instead by data entered into the Clearstream systems.
Global Securities Financing
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Securities financing is the ability to borrow or lend cash or securities against collateral. In securities financing, collateral comprises assets given as a guarantee by a borrower to secure a securities loan and subject to seizure in the event of default. Collateral management refers to the handling of all tasks related to the monitoring of collateral posted by a borrower to meet a financial obligation (optimisation, substitution, top-up, withdrawal, settlement instruction, reporting, processing of margin calls and returns, notification of corporate events, etc.).
Clearstream's collateral management, securities lending and borrowing services are gathered under the Global Liquidity Hub. It provides a pool of liquidity through links to agent banks, trading platforms, clearing houses and other market infrastructures.
Clearstream is a member of the Liquidity Alliance, which was established in January 2013 as a platform for CSDs to collaborate on collateral management. It was founded by ASX, CETIP, Clearstream, Iberclear and Strate.
Investment Fund Services
Clearstream has developed the world's largest cross-border fund processing platform, called Vestima. It handles all types of funds, from mutual funds to exchange-traded funds (ETFs) and hedge funds.
In addition to providing access to all fund types, Vestima supports their cross-border distribution. Services offered by Vestima include order routing, centralised delivery versus payment (DVP) settlement, safekeeping, asset servicing and collateral management.
Issuance
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ICSDs and CSDs are often used to bring a security issue to the market, as they possess the necessary infrastructure for distributing the securities to the investors as well as for settlement and safekeeping. Clearstream's ICSD also provides custody services, which means that the security can be serviced throughout its entire lifecycle. Clearstream provides the infrastructure which enables issuers to reach investors worldwide.
Clearstream's services include eligibility assessments, issuance and distribution of domestic, foreign and international (i.e. Eurobonds) new issues of global and domestic instruments: certificates of deposit, depository receipts, treasury bills, commercial papers, short-term and medium-term notes, bonds, equities, warrants, equity-linked notes and investment fund shares.
Settlement
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Clearstream's ICSD settles trades in international securities and in domestic securities traded across borders. The CSDs settle domestic transactions in the German and Luxembourgish markets. Transactions between the two ICSDs Clearstream Banking SA and Euroclear Bank are settled via an electronic communications platform, called the Bridge.
Clearstream operates a delivery versus payment settlement system, ensuring simultaneous settlement of securities and cash transfers on a gross (trade-by-trade) basis. This helps to minimise the risk associated with the settlement of securities.
