Investment Operations

Iberclear Adds Portuguese Market to its Cross-Border Services

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Iberclear, BME’s Spanish Central Securities Depository, has confirmed the addition of Portuguese market to its Cross-Border Services (CBS). Iberclear customers will thus have access to this new market through the connection to the Portuguese central securities depository, Interbolsa.

Portugal joins the other markets already available through this service since last year, namely Germany, France, Italy, the Netherlands and Austria. Spanish financial institutions can thus register and settle international securities from these markets through Iberclear, which, according to depository literature, acts as a single point of access to the ECB’s settlement platform, Target2-Securities (T2S), theoretically bringing about a reduction in costs and processes by simplifying the custody value-chain.

Analysts say access to T2S is of special relevance in the management of Fixed Income portfolios, since, among other advantages, it involves lower settlement risks and greater efficiency by providing more securities financing tools, such as electronic collateral pledge management – already offered by Iberclear – and autocollateralisation services provided by T2S.

CBS comprises settlement and custody services, these grouped under the areas of Corporate Actions, Proxy Voting and Tax Reclaim. In this way, says the depository, any service demanded by an Iberclear participant involving domestic and international securities can be covered.