Iberclear incorporates settlement of German and French fixed income securities cleared in LCH

18 January, 2021

Iberclear, the Spanish Central Securities Depository and a BME company, is incorporating from today the settlement of German and French government debt securities and certain bonds cleared in LCH SA, following the agreement signed with this clearing house.

Iberclear participants which trade and clear certain French and/or German fixed income securities through LCH SA will be able to instruct the settlement of these transactions in their accounts with Iberclear. In addition, in the case that they have already authorized LCH SA to instruct their securities accounts with Iberclear, they will not need to submit any additional authorization to Iberclear.

Specifically, the securities that may be settled in Iberclear are:

  1. French government debt and the bonds known as "Caisse d'amortissement de la dette sociale (CADES)".
  2. German Government Debt and the bonds denominated "Jumbo Pfandbriefe".

Today's agreement extends the scope of the agreement existing since 2017 between Iberclear and LCH, S.A. by which LCH, S.A. accesses the ARCO System. In this way, in addition to the securities admitted to trading on the AIAF Fixed Income Market and the Public  Debt Market and cleared  in  LCH, S.A. which could already be settled in Iberclear, the German and French fixed income securities incorporated through this new agreement are also included. 

Jesús Benito, CEO of Iberclear, said: "The extension of the range of securities cleared in LCH SA that can be settled in Iberclear is part of the strategy of extending to institutions the possibility to settle and hold in their Iberclear accounts the transactions they clear in other CCPs, thereby taking advantage of the benefits generated by centralizing the custody of their assets in their reference depository".

Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA said: “As an open access clearinghouse, an important part of LCH’s role is to support our members’ settlement strategies whilst allowing them to benefit from RepoClear’s deep and diverse netting pool. We are delighted to continue to support our membership in expanding its choice in settlement venues.”

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