Nasdaq CSD Partners with Clearstream to Improve European Market Access for Baltic Investors

Published on 10.09.24

Nasdaq CSD adopts Clearstream’s Investor CSD solution, granting Baltic banks direct access to all TARGET2-Securities (T2S) markets.

The partnership reduces cross-border settlement fees for foreign securities.

Nasdaq CSD is the first Central Securities Depository (CSD) in Europe to implement this service.

Frankfurt/Tallinn/Riga/Vilnius, September 10, 2024 – Nasdaq (NDAQ) announces that Nasdaq CSD has become the first European CSD to gain full connectivity to all T2S markets through Clearstream’s German central securities depository. This groundbreaking partnership provides Nasdaq CSD’s participants with access to a vast pool of European markets for securities settlement and asset servicing.

Clearstream is the only CSD which maintains links with all markets within the TARGET2-Securities platform. The interoperable link with Clearstream enables Nasdaq CSD to extend this comprehensive network to its participants, making Nasdaq CSD the first CSD in Europe to utilize Clearstream’s Investor CSD solution. This allows participants to settle trades both within and outside of T2S.

For Baltic investors, this development means access to lower transaction fees for foreign securities due to decreased settlement costs. Nasdaq CSD participants, primarily banks, will find the settlement of foreign securities as efficient and straightforward as local securities settlement.

Additionally, this newly established partnership allows companies listed outside the Baltics to easily access a growing Baltic investor base by dual-listing on Nasdaq Baltic exchanges.

“Nasdaq CSD continues to lead in facilitating interconnectivity within European markets and connecting companies and investors in our region to the broader European financial system. This pioneering collaboration with Clearstream not only provides immediate benefits to both Baltic investors and Nasdaq CSD participants but also represents a significant step towards more integrated financial markets in Europe,” says Indars Aščuks, CEO of Nasdaq CSD.

Samuel Riley, CEO of Clearstream Securities Services, comments: “Clearstream and Nasdaq share the strong commitment to connecting markets globally. This co-operation has created a precedent for CSDs to explore the capabilities of Clearstream’s investor model and to demonstrate the interoperability of our ICSD and CSD services. The move allows Nasdaq CSD to offer its participants access to a trusted link network that fulfills the entire range of regulatory and compliance requirements surrounding CSDR whilst providing an efficient, flexible platform.”

Eliminating post trade barriers is essential for advancing the EU’s global competitiveness

Both Nasdaq and Clearstream are taking steps to remove post-trade barriers in Europe to deliver cross-border efficiencies and reduce costs for investors and corporates

Thanks to the merger of the three Baltic CSDs and the Icelandic CSD into Nasdaq CSD, shared trading, settlement platforms, and common rulebooks, the Baltic securities markets have achieved the highest degree of regional integration among EU markets, benefiting participants and investors.

These developments align with the core idea of the Capital Markets Union (CMU): creating a single market for capital by ensuring that investments and savings flow freely across the EU.

About Central Securities Depository (CSD)

CSDs register securities such as equities, bonds, and fund units. Their main functions include the safekeeping of securities, facilitating the clearing and settlement of securities transactions, and providing asset servicing.

CSDs actively participate in the integration of financial markets by establishing links between various CSDs, allowing participants in one market to access securities issued in other markets.

TARGET2-Securities (T2S) is a Eurosystem infrastructure that provides the European post-trading industry with a single, borderless, pan-European platform for securities settlement in central bank money.

About Nasdaq

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

Media Contacts:
Ott Raidla
Nasdaq Tallinn / Nasdaq Baltic Market
Marketing and Communications Manager
ott.raidla@nasdaq.com
+372 5552 4824