Thursday, September 28, 2006
Euroclear And Clearstream Agree Further Upgrades To The Electronic Bridge Between Them
Euroclear Bank and Clearstream Banking Luxembourg have agreed a programme of improvements to the automated day-time bridge between the two ICSDs, which has caused friction between them and between them and their clients for nearly 20 years.
Delivery of the first enhancement, which is scheduled for January 2007, aims to improve overall settlement efficiency for the ICSDs' respective clients and increase the capacity for same-day transaction settlement and securities financing across the Bridge. They says further details about what exactly this means will be communicated "in due course," but they promise the initial enhancement to the daytime Bridge will:
First, increase settlement opportunities, particularly for trades settling on T+0, for clients with the addition of three new file exchanges of settlement-related information in the afternoon (from 7 to 10 times per day);
Secondly, provide more timely and frequent transaction-repair and fail-management information to clients as a result of three new exchanges of transaction-matching files (from 17 to 20 times per day); and extend instruction input deadlines for clients by more than one hour for key settlement cycles during the day.
The two ICSDs says they are "committed to making continuous improvements to the Bridge in order to support international capital market professionals with fast, efficient and reliable settlement between the ICSDs." They have set up a "forum to define and deliver further enhancements to the Bridge in line with market needs. This initiative aims to maximise same-day financing and transaction-management possibilities for the global market place across the Bridge."
"The evolving interoperability between Euroclear Bank and Clearstream Banking Luxembourg is a shining example of market-driven co-operation," says Martine Dinne, CEO of Euroclear Bank. "We are committed to working with Clearstream on future developments that increase efficiency and liquidity, while reducing risk for the market."
Jeffrey Tessler, Chief Executive Officer, Clearstream, adds that the programme of improvements will "benefit clients by allowing them to use the infrastructure to efficiently support their trading and collateral management activities." The first electronic overnight Bridge was launched in 1993. Numerous upgrades to the Bridge have taken place since its launch, of which the latest was the introduction of a supplementary, automated daytime Bridge in November 2004
Delivery of the first enhancement, which is scheduled for January 2007, aims to improve overall settlement efficiency for the ICSDs' respective clients and increase the capacity for same-day transaction settlement and securities financing across the Bridge. They says further details about what exactly this means will be communicated "in due course," but they promise the initial enhancement to the daytime Bridge will:
First, increase settlement opportunities, particularly for trades settling on T+0, for clients with the addition of three new file exchanges of settlement-related information in the afternoon (from 7 to 10 times per day);
Secondly, provide more timely and frequent transaction-repair and fail-management information to clients as a result of three new exchanges of transaction-matching files (from 17 to 20 times per day); and extend instruction input deadlines for clients by more than one hour for key settlement cycles during the day.
The two ICSDs says they are "committed to making continuous improvements to the Bridge in order to support international capital market professionals with fast, efficient and reliable settlement between the ICSDs." They have set up a "forum to define and deliver further enhancements to the Bridge in line with market needs. This initiative aims to maximise same-day financing and transaction-management possibilities for the global market place across the Bridge."
"The evolving interoperability between Euroclear Bank and Clearstream Banking Luxembourg is a shining example of market-driven co-operation," says Martine Dinne, CEO of Euroclear Bank. "We are committed to working with Clearstream on future developments that increase efficiency and liquidity, while reducing risk for the market."
Jeffrey Tessler, Chief Executive Officer, Clearstream, adds that the programme of improvements will "benefit clients by allowing them to use the infrastructure to efficiently support their trading and collateral management activities." The first electronic overnight Bridge was launched in 1993. Numerous upgrades to the Bridge have taken place since its launch, of which the latest was the introduction of a supplementary, automated daytime Bridge in November 2004
