Clearstream has reached the next level of digitisation of financial markets by creating the digital instrument on D7, Deutsche Börse’s digital post-trade platform. European issuers can now leverage the new infrastructure to issue digital securities. The first automated issuances were performed by LBBW and Vontobel, and facilitated by Clearstream, Deutsche Börse’s post-trade service provider. D7 is fully integrated within Clearstream’s global infrastructure and works as a connector between established networks and digital capabilities.
Digital instruments are smart objects that represent electronic securities. They contain all the relevant information needed throughout the lifecycle of a security, such as reference, listing and legal data, corporate actions and reporting information. They are technology-, asset-class- and location-agnostic, and enable same-day issuance, automated straight-through processing and asset servicing of securities across established and new financial networks and infrastructures. In this way, the digital instrument serves as a facilitator to streamline operational efforts, minimise reconciliation needs and reduce overall risk.
Like this, Clearstream as part of Deutsche Börse Group will provide a fully digital alternative to conventional physical issuance for approx. 80 percent of German securities. The scope of this new D7 offering includes warrants and certificates with further asset classes and jurisdictions planned in the future, in compliance with respective regulatory frameworks.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, says: “In line with our core mission to run innovative and future-proof infrastructures for our customers and the entire industry, we have now created the smart digital security. This moves issuance of structured products from days to minutes and enables our clients and partners to quickly adapt to the changing market environment. We are accelerating time to…
