Triparty Collateral Management Service (CmaX): Removal of fractions allocation from Collateral, Lending and Liquidity solutions processing

27.06.2023

Clearstream Banking¹ informs clients that effective

4 July 2023

securities currently allocated with nominal values of 1,000 or less will be automatically removed by Clearstream Banking and returned to the respective client source accounts.

Impact on clients

Securities allocations relating to the following Collateral, Lending and Liquidity solutions (CLLS) services will be modified so that securities with a nominal value of less than 1,000 will no longer be allocated for:

• GC Pooling (GCP) processing, that is, securities allocations between client source accounts and reservation accounts and between the CCP account and reservation/segregation accounts.
• Pledges/margin fund contributions in favour of Eurex Clearing, that is, transfer of proprietary assets or assets from GCP reuse.

Clearstream Banking advises clients not to perform any overnight repo openings with immediate settlement on Eurex Repo on 4 July 2023 between 07:30 and 09:00 as settlement instructions will be put on hold during this period.

This modification will bring reductions of the overall number of allocated securities per claim and hence significant settlement cost savings for bookings performed on T2S, as well as more efficient usage of securities liquidity.

Further information

For further information, clients may contact their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.