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Collateral mobility

Improving collateral mobility Consolidating European domestic and international securities in a single pool of liquidity boosts settlement efficiency across T2S and international markets

Clearstream offers harmonised collateral management and securities lending services for both International Central Securities Depository (ICSD) and Central Securities Depository (CSD) customers following the migration to the European Central Bank’s centralised settlement platform TARGET2-Securities (T2S). Customers can pool all their assets, including equity, at Clearstream’s CSD in Germany, thereby making it their gateway to T2S.

Clearstream’s integrated collateral management services (OneCMS) – which forms part of Clearstream’s enhanced integrated offering for T2S – enable mutual customers of Clearstream’s ICSD in Luxembourg and CSD in Germany to automatically mobilise assets across both ICSD and CSD for triparty collateral management. A single collateral management system manages customers’ entire collateral pool across different locations, resulting in an optimised use of collateral and enhanced liquidity management.

The migration to T2S has furthermore opened new opportunities for pooling CSD and ICSD liquidity across asset classes, thereby overcoming collateral fragmentation and maximising the use of customer’s assets by automatically allocating them for securities lending purposes. Covering both T2S and Clearstream’s ICSD settlement, the ASL principal service represents a unique opportunity for customers to prevent liquidity shortage situations on their accounts and to smoothen their settlement regardless of the location, thanks to an extensive pool of liquidity.

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