Clearstream now facilitates automated settlement for primary trades in Baltic sovereign debt on Nasdaq Baltic exchanges

08.04.2024 RIG, TLN, VLN

Frankfurt/Tallinn/Riga/Vilnius, April 8, 2024 – Nasdaq (NDAQ) and Clearstream announce that sovereign debt instruments issued by the Baltic governments, registered with Nasdaq CSD and listed on the Nasdaq Baltic exchanges are now eligible for settlement in Clearstream. This initiative is the result of a joint effort between Clearstream, Nasdaq Baltic exchanges and Nasdaq CSD.

Global access to Baltic sovereign securities

Primary dealers can now access an automated, streamlined post-trade solution through a single securities account at Clearstream. When combined with a central bank cash account of their choice, dealers can pool cash and collateral Europe-wide.

This gives global investors easy access to Baltic sovereign securities issued through domestic auctions.

“The Clearstream trade capture solution is a great automated tool for international primary dealers to access and settle debt securities auctioned on Nasdaq Baltic. It also enables global investors looking to invest in the Baltic securities market to streamline their post-trade arrangements,” commented Kaarel Ots, Head of Nasdaq Baltic exchanges.

“Automation of settlement is an important step in facilitating the opportunities for primary dealers, and through them also for European investors, to participate in the securities auctions of the Republic of Lithuania. It increases the attractiveness of Lithuanian securities, promotes investor competition, and contributes to the formation of transparent market pricing,” said Rasa Kavolytė, Director of the State Treasury Department of the Ministry of Finance of the Republic of Lithuania.

“We are happy to see improvements to the securities settlement infrastructure that will positively impact Latvia and the whole Baltic capital market. The settlement process, through Swift, creates easier access to government securities and paves the way for international partners and investors to become more active in our region,” commented the Treasury of the Republic of Latvia.

Dirk Loscher, Head of Custody and Investor Solutions at Clearstream, said: “We are pleased to support the Latvian, Lithuanian and Estonian Debt Management Offices (DMO) in the distribution of their sovereign debt instruments, in a safe and efficient manner. By joining forces with our Baltic partners, we are pursuing our initiative to leverage the settlement functionalities offered by the T2S platform to make cross-border settlement in Central Bank Money a reality in the European government bond markets.”

Key benefits

• Straight-through and automated service for primary market dealers
• Broad European cash and collateral pooling
• Easier access for investors to Baltic sovereign debt instruments T2S settlement

About Nasdaq

Nasdaq Baltic represents the common offering of Nasdaq Tallinn, Nasdaq Riga, and Nasdaq Vilnius stock exchanges as well as Nasdaq CSD. Read more at nasdaqbaltic.com and nasdaqcsd.com.

Nasdaq (NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at nasdaq.com.

About Clearstream

Clearstream is the innovative and trusted post-trade business for the global markets. It runs the leading securities and funds servicing ecosystems of tomorrow.

The company operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market. With 18 trillion Euros in assets under custody, it is one of the world’s largest settlement and custody firms for domestic and international securities.

It also delivers premier fund execution, distribution, data and reporting services, covering over 55 fund markets worldwide.

Clearstream is part of Deutsche Börse Group, an international exchange organisation and provider of innovative market infrastructures.

Media contacts:

Ott Raidla
Head of Marketing and Communications
Nasdaq Baltic
ott.raidla@nasdaq.com
+372 5552 4824