What Is Clearstream International?

Clearstream International is a leading supplier of post-trading services based in Europe, whose core businesses are settlements of market transactions and custody of securities. Clearstream International's primary services are to act as an international central securities depository and as a central securities depository for domestic securities from Germany and Luxembourg.

The company was formed through the merger of Cedel International and Deutsche Borse Clearing in January 2000 and is presently a wholly owned subsidiary of Deutsche Borse, one of the largest exchanges in the world.

Clearstream International was previously known as Deutsche Börse Clearing AG before changing its name to Clearstream International SA in January of 2000.

Clearstream International Explained

Clearstream has developed an especially strong position in the international fixed income market, handling the clearing and settlement of Eurobonds. It has about 2,500 customers in more than 110 countries, based on its capability to serve as a single point of access for the settlement and custody of international bonds and equities across 58 markets. Clearstream settles more than 250,000 transactions daily. The scale of its operations is immense – in 2018, custodial assets exceeded 13.7 trillion euro.

The company is an international central securities depository (ICSD), based in Luxembourg. In this capacity, it provides post-trade infrastructure and securities services for the international market as well as the 58 domestic markets worldwide. It is also a central securities depository (CSD), based in Frankfurt. In this capacity, it provides the post-trade infrastructure for the German securities industry, offering access to a growing number of international markets.

Key Takeaways

  • Clearstream International SA is a European-based central securities depository that provides post-trading services for both domestic and international markets.
  • The company is responsible for the settlement and custody of international stocks and bonds throughout 58 markets around the world.
  • The company, a division of Deutsche Börse, settles over 250,000 transactions each day, with custodial assets of more than 13.7 trillion euro.

Details of Clearstream International

Clearstream offers asset services including the following:

  • Distribution and settlement processing of new issues.
  • Income and redemption payment processing.
  • Corporate actions, tax and proxy voting services, and reporting and safekeeping services.
  • Cash and banking services, such as commercial and central bank money services.

It also provides connectivity solutions including CleartstreamXact, a web-based connectivity channel for smooth delivery of services, and MyStandards, a web platform to manage ISO messaging standards and market practices.

110

The number of countries in which Clearstream International operates, where it maintains relationships with more than 2,500 customers.

Clearstream also provides global securities financing services, such as global liquidity hub, ICSD, CSD and partnerships services, also TradeCycle and liquidity alliance, investment fund services, including Vestima, which delivers investment fund services that support the broad distribution needs of the investment fund industry, and also distributors and fund platforms, and fund providers.

The company also provides issuance solutions that consist of a global issuer hub, issuance models and services, post-issuance services, safekeeping and vaults, and reference data services. It also offers IT solutions, such as hosting, connectivity, compliance, and operational solutions. It also provides settlement services, including commercial and central bank money settlement, as well as other settlement services.