LCH RepoClear expands settlement connections with European CSDs

LCH’s repo clearinghouse has extended its settlement connections with several European central securities depositories (CSDs) to provide greater choice for banks.

Through these partnerships, all French and Belgian government debt securities cleared through LCH SA’s RepoClear service will be made available for settlement through Clearstream Banking.

In addition, cleared Spanish government bonds have been made available for settlement through Euroclear France, while French and German government bonds can be settled through Iberclear (BME).

“As an open access clearinghouse, an important part of LCH’s role is to support our members’ settlement strategies while allowing them to benefit from RepoClear’s deep and diverse clearing pool. We are delighted to continue supporting our members in expanding their choice of settlement venues,” said Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA.

The move will allow international investors to overcome several challenges associated with cross-border transactions, such as having to maintain accounts at different settlement or custody facilities that support a particular security.

LCH said the move will provide a single point of access to minimize these barriers and give settlement banks greater freedom of choice. The partnership will also extend Clearstream Banking’s existing settlement proposal for German public debt, which was implemented in 2018.

RepoClear clearing members will benefit from Clearstream being a new settlement venue for these two markets and investors will be able to consolidate an even wider range of their European settlement activities with Clearstream’s International CSD (ICSD).

“French and Belgian public debt is still in high demand. We are delighted to be able to offer an expanded settlement proposal for these two new national markets,” said Thilo Derenbach, Head of European Preservation Products at Clearstream. “Through this development, Clearstream and LCH customers can enjoy the operational benefits of bundling their settlement streams with us.”

Rosemary S. Bishop