SIX Announces Collaboration with Clearstream Amid Financial Challenges

Rising costs of regulation and increased competition are factors that have driven the potential partnership.

SIX Securities Services, a provider of clearing, settlement, custody, collateral management and repo trading services, and Clearstream, an international central securities depository, today announced their intention to enter into a partnership to provide services to the Swiss and European markets in the future.

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Increased Costs

With European financial market infrastructures facing substantially increased costs of regulation and compliance, it has become essential for FMI’s to move towards market consolidation and rationalisation to offset these new challenges.

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By working together to address these issues, Clearstream and SIX Securities Services are taking a proactive approach together to drive this process. To this effect, the two companies have signed a Letter of Intent and are now focused on preparing the details that will lead to a Memorandum of Understanding targeted for mid-December. This signing will clear the way for a final contract to be signed followed by the beginning of the collaboration in 2017.

Thomas Zeeb, Division CEO SIX Securities Services, commented: “Though discussions are still at an early stage, I am convinced that both SIX Securities Services and Clearstream have a number of complementary and mutually beneficial opportunities to explore together.”

Jeffrey Tessler, Chairman of Clearstream and member of the executive board of Deutsche Börse, added: “We are delighted to announce our strategic partnership with SIX Securities Services. This is the latest milestone in a joint project tasked to identify mutually beneficial strategic opportunities on core international and domestic business.”

The cooperation is intended to improve the client offering as well as the companies respective market positioning and comes in the context of a post-trade ecosystem that is experiencing change on an unprecedented scale.

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