Clearstream

Clearstream
X-angel · CC BY-SA 4.0 · source
Name	Clearstream
Type	Private
Industry	Financial services
Founded	1970
Founder	Luxembourg banks
Headquarters	Luxembourg City, Luxembourg
Key people	Marc Roberts, Frédéric Hannequart
Services	Securities settlement, custody, and related services
Owner	Deutsche Börse

Clearstream is a leading international provider of securities settlement and custody services, owned by Deutsche Börse. Clearstream's services are used by banks, broker-dealers, and other financial institutions, such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The company's history dates back to 1970, when it was founded by a group of Luxembourg banks, including Banque et Caisse d'Épargne de l'État and Banque Internationale à Luxembourg. Clearstream has since become a major player in the global financial market, working closely with organizations like the European Central Bank, International Monetary Fund, and World Bank.

Introduction

Clearstream's role in the global financial system is crucial, as it provides a platform for the settlement and custody of securities, such as bonds, stocks, and derivatives. The company's services are used by a wide range of clients, including investment banks, such as Barclays, UBS, and Credit Suisse, as well as asset managers, like BlackRock, Vanguard, and State Street Corporation. Clearstream's operations are closely linked to those of other major financial institutions, such as the New York Stock Exchange, London Stock Exchange, and Tokyo Stock Exchange. The company is also a member of the International Securities Services Association, which includes other prominent financial institutions, like Societe Generale, BNP Paribas, and Royal Bank of Scotland.

History

Clearstream's history began in 1970, when it was founded by a group of Luxembourg banks, with the aim of providing securities settlement and custody services to the European financial market. Over the years, the company has undergone significant changes, including its acquisition by Deutsche Börse in 2002. This acquisition has enabled Clearstream to expand its services and strengthen its position in the global financial market, working closely with other major exchanges, such as the Frankfurt Stock Exchange, Paris Stock Exchange, and Milan Stock Exchange. Clearstream has also established partnerships with other financial institutions, including Citi, Bank of America Merrill Lynch, and HSBC, to provide a range of services to its clients.

Services

Clearstream's services include securities settlement, custody, and related services, such as cash management and foreign exchange services. The company's clients can also access a range of other services, including investment fund services, provided by companies like Allianz Global Investors, DWS Investments, and Amundi. Clearstream's services are designed to meet the needs of a wide range of clients, from small and medium-sized enterprises to large multinational corporations, such as Microsoft, Apple, and Google. The company's services are also used by pension funds, like CalPERS, TIAA, and Fidelity Investments, as well as sovereign wealth funds, including the Abu Dhabi Investment Authority, Kuwait Investment Authority, and Qatar Investment Authority.

Controversies

Clearstream has been involved in several controversies over the years, including allegations of money laundering and tax evasion. In 2001, the company was accused of being involved in a major money laundering scandal, which led to a significant overhaul of its anti-money laundering procedures. Clearstream has also faced criticism for its role in facilitating tax evasion and aggressive tax planning by some of its clients, including multinational corporations like Amazon, Facebook, and Nike. The company has worked closely with regulatory bodies, such as the Financial Action Task Force, International Organization of Securities Commissions, and European Securities and Markets Authority, to strengthen its compliance and risk management procedures.

Operations

Clearstream's operations are global in scope, with the company providing services to clients in over 100 countries, including United States, China, Japan, and United Kingdom. The company's headquarters are located in Luxembourg City, and it has offices in other major financial centers, such as Frankfurt, London, and New York City. Clearstream's operations are closely linked to those of other major financial institutions, such as the Federal Reserve System, Bank of England, and European Central Bank. The company is also a member of the Global Financial Markets Association, which includes other prominent financial institutions, like Institute of International Finance, International Swaps and Derivatives Association, and Securities Industry and Financial Markets Association. Clearstream works closely with organizations like the World Economic Forum, International Chamber of Commerce, and Organisation for Economic Co-operation and Development to promote financial stability and economic growth. Category:Financial services companies