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The international central securities depository (ICSD) Clearstream (previously Cedel) turns 40 years. It was founded on 28 September 1970 by 66 financial institutions from 11 countries to reduce the costs and risks of settling securities in the Eurobond market. Settlement and safekeeping of Eurobonds is still Clearstream’s core business, accounting for 47 percent of its revenues, and with a market share of 37 percent (August 2010).
The post-trade business is sometimes referred to as the “plumbing of the financial system”. Indeed and simply put, it is about a worldwide network of tubes through which securities are transferred in return for cash between banks, exchanges or other clients and a large depository. In essence, Clearstream handles the property rights of the...
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