The International Central Securities Depository (ICSD) Clearstream, which is part of Deutsche Börse Group, will continue to offer stable custody services no matter how the Brexit negotiations will evolve, Deutsche Börse just announced.
This commitment is founded in Clearstream‘s core task, which is to absorb differences in regulatory frameworks. The company was established in 1970 (back then under the name Cedel) by 66 of the world’s major financial institutions. The objective: minimising risk of cross-border settlement.
We standardise what is fragmented”, says Philip Brown, Co-CEO of Clearstream Banking S.A. “Clearstream has supported its clients in tough transitions before, among them the Argentina default and the beginning of the sovereign debt crisis with the restructuring of Greek bonds.” Clearstream has a strong history of developing solutions to cater for differences between EU requirements and legislation in third countries.
Even with the UK in the EU, the tasks of a custodian are in no way harmonised because there is no unity of property law or fiscal law across the EU or even within the Eurozone”, Brown stresses. “So, from a custody and settlement perspective, we do not enter unknown territory and will not add to the significant challenges the financial industry is facing.
Clearstream prepares for Brexit by joining forces with all other entities of Deutsche Börse Group. A dedicated Brexit transition team helps customers to deal with the changes and ongoing uncertainty. As a leading market structure player with a global network, Deutsche Börse has an existential incentive in maintaining and nurturing its existing strong and proven relationships with London-based firms.
