Clearstream, the international central securities depository (ICSD) within the Deutsche Börse Group, is to offer settlement service for Slovenian Government securities as of October 29.
With this addition, Clearstream's network now reaches 45 domestic markets around the globe.
Customers will be able to settle transactions on Clearstream's Creation platform both on a 'Free of Payment' (FoP) and against payment (DvP) basis via the account that Clearstream Banking has opened with KDD. Nova Lubljanska Banka, the biggest Slovenian bank, has been named Clearstream's account operator. Initially Bridge transactions will be excluded because Slovenian securities will not be Bridge eligible at the start of the new service.
The new link will give Clearstream's customers the opportunity to enter the Slovenian market, a country of two million people, which was the first of the 10 states that entered the European Union in May 2004 to join the eurozone, in 2007, as the 13th member of the currency union.
The development of this new link demonstrates Clearstream's commitment to facilitate market openness and to create solutions in response to customer and market needs.
Stanislava Zadravec C., Director General Treasury Directorate, Slovenia Ministry of Finance said: "The link between Clearstream and KDD -Central Securities Clearing Corporation Inc to be established for securities' - clearing is an important step towards integrating the Slovenian capital market within the common European capital market. The Ministry of Finance is highly appreciative of the substantial efforts invested into the enterprise. This new link will enable the Government to issue locally while trading globally, and will at the same time make Slovenian Government Securities more easily accessible and thus more attractive to the global community of investors. We hope that all the parties involved will maintain the efforts with the final objective of including also other types of Slovenian securities"
Boris T. Šnuderl, CEO and Davor Pavic COO of KDD, said: "KDD management believes that the opening of the link between Clearstream and KDD will bring a new important dimension in the existing securities settlement process. It will create further momentum to the integration process of the local market participants and products into the pan-european clearing and settlement landscape. In this way we are committed to follow the objective of bringing high value added services to our customers growing and challenging business demands."
Jeffrey Tessler, Clearstream's CEO stated: "The addition of the link to the Slovenian market further widens the international nature of our business. We will always be looking to further expand in this way as it shows how Clearstream facilitates market access through its infrastructure and creates innovative solutions in response to customer demand"