Investment Operations

Iberclear to Launch New Cross Border Custody and Settlement System

Iberclear, BME’s Spanish Central Securities Depository, will launch a cross-border custody and settlement service on December 17 called Cross-Border Services (CBS).

Spanish financial institutions will be able to register and settle international securities through Iberclear, which will act as a single gateway to Target2-Securities (T2S) and international markets. In the first stage, access will be offered to markets in Germany, France, Italy, The Netherlands and Austria, with Portugal envisaged to be integrated in 2019.

CBS not only comprises settlement services but custody as well, all grouped into three categories: Management of Corporate Events, Proxy Voting y and Tax Reclaims. As a result, all the activity that may be demanded by an Iberclear participant dealing in foreign securities is thus covered. It will also feature value-added services and increase self-collaterisation capabilities with Target2-Securities.

The service will allow participants to make good use of the accounts they have with Iberclear not only for domestic securities, but also for the those from T2S markets by building upon the developments brought about by the Reform of Clearing and Settlement in Spain, which are already being applied on a regular basis.

“This new solution offers opportunities for clients and the broader Spanish investment community. It represents a step forward for Iberclear in a new strategic path of expansion of the service range following its successful migration to T2S “, said Jesús Benito, CEO of Iberclear.