Clearstream, an international central securities depository (ICSD) within Deutsche Borse Group, has opened a full delivery versus payment (DvP) link to Iceland for bonds and equities plus a range of asset servicing with cash accounts at the central bank and securities accounts at the Central Securities Depository (CSD).
Agreements forged with the Icelandic Central Bank and the country’s CSD allows Clearstream to hold Icelandic securities via a DvP link enabling irrevocable delivery of securities with the guarantee of payment by the counterparty.
Previously, Clearstream had an indirect free of payment link via Danske Bank enabling irrevocable delivery of securities but without the guarantee of payment by the counterparty.
Mark Gem, a member of executive board at Clearstream, said: “At the time of the financial crisis most financial institutions lost confidence in the Icelandic system but Clearstream worked hard and quickly to strengthen its existing links with Iceland. Today, Clearstream is delighted to help bring back stability to Iceland by first securing the cash link with the central bank and then later by upgrading our service range while ensuring the best possible risk-free environment for our customers.”
Einar Sigurjonsson, CEO of the Icelandic Securities Depository, said: “We at the Icelandic Securities Depository (ISD) are very pleased about Clearstream becoming a direct participant in the Icelandic financial market. We believe that it will be a great benefit for our clients and help establishing opportunities and trust for the international investors towards the Icelandic market.”