Editing Clearstream

{{Short description|Financial market infrastructure}}
{{infobox company
| name             = Clearstream
| logo             = Clearstream Company Logo.jpg
| image            = File:DSC02268 Eschborn Süd und The Cube Deutsche Börse.jpg
| image_caption    = The Cube building in [[Eschborn]] near [[Frankfurt]], head office of Clearstream Holding AG and of the Deutsche Börse Group
| type             = [[Subsidiary]]
| fate             =
| successor        = 
| foundation       = {{Start date|2000|01}}
| founder          = 
| defunct          = 
| location_city    = [[Luxembourg City]]
| location_country = [[Luxembourg]]
| key_people       = 
| industry         = [[Finance]]
| products         = [[Central securities depository|(International) Central securities depository]]
| revenue          = 
| members          = 5,000+
| num_employees    = 
| parent           = {{lang|de|[[Deutsche Börse]]|italic=no}}
| divisions        = 
| homepage         = http://www.clearstream.com
| footnotes        = 
}}
'''Clearstream''' or the '''Clearstream Group''' is the [[central securities depository]] arm of the [[Deutsche Börse Group]]. It provides [[settlement (finance)|settlement]] and custody as well as other related services for [[securities]] across all [[asset classes]]. Its subsidiary in [[Luxembourg]], [[Clearstream Banking SA]], is one of two world-leading International central securities depositories (ICSDs), the other one being [[Euroclear Bank]]. Both the main German national CSD, [[Clearstream Banking AG]], and the national CSD of Luxembourg, [[LuxCSD]], are also part of Clearstream. Clearstream Banking AG and Clearstream Banking SA are held via intermediate holding company '''Clearstream Holding AG'''.<ref>{{citation |title=Deutsche Börse Group Annual Report 2023 |url=https://www.deutsche-boerse.com/resource/blob/3811980/e40e1743fcc932f4472cf61508160f07/data/DBG-annual-report-2023.pdf}}{{rp|231–232}}</ref>

As of 2017, Clearstream had around 2,500 customers in 110 countries.<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/about-clearstream/who-we-are |title=Who we are |access-date=2017-02-19 |archive-url=https://web.archive.org/web/20170303053329/http://www.clearstream.com/clearstream-en/about-clearstream/who-we-are |archive-date=2017-03-03 |url-status=dead }}</ref>

The name "Clearstream" is often misinterpreted as indicating a [[Clearing (finance)|clearing]] activity of the Clearstream Group, which is not the case as the clearing arm of Deutsche Börse is a separate entity, [[Eurex Clearing]]. This confusion comes from the name originating in a bygone era when securities clearing and [[Settlement (finance)|settlement]] were often viewed as a single activity.<ref name=Norman>{{cite book |author=Peter Norman |title=Plumbers and Visionaries: Securities Settlement and Europe's Financial Market |date=2007 |publisher=John Wiley & Sons |location=London}}</ref>{{rp|16}}

==History==

Clearstream was formed in January 2000 through the merger of [[Cedel]] and [[Deutsche Börse Clearing]]. Initially a 50-50 joint venture between [[Cedel International]] and [[Deutsche Börse]], it became a fully-owned subsidiary of the latter on {{date|2002-7-1}}.<ref>{{cite web|url=http://deutsche-boerse.com/dbg/dispatch/en/kir/dbg_nav/about_us/10_Deutsche_Boerse_Group/50_Company_History?horizontal=page4_DB_History_2000-2009|title=Deutsche Börse Group - Company history|website=Deutsche-boerse.com|access-date=1 August 2018}}</ref>

In July 2010, Clearstream founded LuxCSD together with the [[Central Bank of Luxembourg]] (BCL), to act as a CSD for Luxembourg.<ref>{{cite web |url=http://www.luxcsd.com/luxcsd-en/keydocuments/customer-handbook |title=LuxCSD Customer Handbook|website=Luxcsd.com |page=9|access-date=1 August 2018}}</ref>

In December 2010, Clearstream co-founded REGIS-TR, a joint venture with the Spanish Central Securities Depository Iberclear, to act as a [[Trade Repository|trade repository]] for [[derivative (finance)|derivative]]s transactions, helping participants meet their regulatory reporting obligations brought about by the introduction of the [[European Market Infrastructure Regulation]] (EMIR).<ref>{{Cite web |url=http://www.regis-tr.com/index.php/media-centre/press-releases/76-otc-derivatives-trade-repository-regist-tr-starts-operations |title=REGIS-TR - OTC derivatives trade repository REGIST-TR starts operations |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20130215101501/http://www.regis-tr.com/index.php/media-centre/press-releases/76-otc-derivatives-trade-repository-regist-tr-starts-operations |archive-date=2013-02-15 |url-status=dead }}</ref>

In 2021, Clearstream acquired full ownership of LuxCSD by buying out the BCL's 50 percent stake.<ref>{{citation |title=Deutsche Börse Group Annual Report 2021 |url=https://www.deutsche-boerse.com/resource/blob/2725920/46c9bf2ffcf7da4d6c23de616c518344/data/DBG-annual-report-2021.pdf}}</ref>{{rp|263}}

==Supervision==
Based in Luxembourg and Germany, Clearstream is subject to the supervision of the regulatory authorities of these two countries. In Luxembourg, the [[Commission de Surveillance du Secteur Financier]] (CSSF) is the prudential regulator with authority over all banks and financial service providers. In Germany, Clearstream is regulated as a bank according to the German Banking Act ("Kreditwesengesetz") and is therefore subject to the prudential supervision of the [[Federal Financial Supervisory Authority|German Federal Financial Supervisory Authority]] (German: "Bundesanstalt für Finanzdienstleistungsaufsicht" - BaFin). Moreover, Clearstream is regulated in each market where it has operational centres, for example by the [[Monetary Authority of Singapore]].

As the operator of securities settlement systems in both Luxembourg and Germany, Clearstream is additionally regulated by the central banks of these two countries, namely the Banque centrale du Luxembourg and the [[Deutsche Bundesbank]].

==Operations==
{{Self-published|section|date=February 2025}}
Clearstream accepts [[central bank]]s and [[Money laundering#Enforcement costs and associated privacy concerns|AML-regulated]] credit institutions (such as regulated banks) as customers. Clearstream does not accept [[natural persons]] as customers and no account is opened in the name of a natural person.<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/about-clearstream/becoming-a-clearstream-customer |title=Becoming a Clearstream customer |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323181206/http://www.clearstream.com/clearstream-en/about-clearstream/becoming-a-clearstream-customer |archive-date=2015-03-23 |url-status=dead }}</ref>

Clearstream has operational centres in [[Cork (city)|Cork]], [[Cardiff]], [[Luxembourg]], [[Prague]], and [[Singapore]]. It also maintains representative offices in [[London]], [[Hong Kong]], [[Tokyo]], [[Dubai]], [[New York City|New York]], and [[Zurich]].<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/about-clearstream/who-we-are/office-locations |title=Office Locations |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323190618/http://www.clearstream.com/clearstream-en/about-clearstream/who-we-are/office-locations |archive-date=2015-03-23 |url-status=dead }}</ref>

===Asset Services===
Source:<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/asset-services |title=Asset services |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323194235/http://www.clearstream.com/clearstream-en/products-and-services/asset-services |archive-date=2015-03-23 |url-status=dead }}</ref>

Clearstream is responsible for the management, safekeeping/custody and administration of securities (assets) under custody. Services include income and redemption payments, [[corporate actions]] as well as tax and [[proxy voting]].

The majority of securities safekept by Clearstream are [[Settlement (finance)#Immobilisation|immobilised]]. Securities are reflected in book-entry form in the accounts of customers at Clearstream regardless of whether they are held in physical or dematerialised form. This means that they are no longer represented by physical certificates, but instead by data entered into the Clearstream systems.

===Global Securities Financing===
Source:<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/global-securities-financing |title=Global Securities Financing |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150318075422/http://www.clearstream.com/clearstream-en/products-and-services/global-securities-financing |archive-date=2015-03-18 |url-status=dead }}</ref>

Securities financing is the ability to borrow or [[securities lending|lend]] cash or securities against [[collateral (finance)|collateral]]. In securities financing, collateral comprises assets given as a guarantee by a borrower to secure a securities loan and subject to seizure in the event of [[default (finance)|default]]. [[Collateral management]] refers to the handling of all tasks related to the monitoring of collateral posted by a borrower to meet a financial obligation (optimisation, substitution, top-up, withdrawal, settlement instruction, reporting, processing of [[Margin (finance)#Margin Call|margin calls]] and returns, notification of corporate events, etc.).

Clearstream's collateral management, securities lending and borrowing services are gathered under the Global Liquidity Hub.<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/global-securities-financing/global-liquidity-hub |title=Global Liquidity Hub |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323202533/http://www.clearstream.com/clearstream-en/products-and-services/global-securities-financing/global-liquidity-hub |archive-date=2015-03-23 |url-status=dead }}</ref> It provides a pool of [[market liquidity|liquidity]] through links to agent banks, trading platforms, [[clearing house (finance)|clearing houses]] and other market infrastructures.

Clearstream is a member of the Liquidity Alliance, which was established in January 2013 as a platform for CSDs to collaborate on collateral management. It was founded by [[Australian Securities Exchange|ASX]], [[CETIP]], Clearstream, [[Iberclear]] and [[Strate CSD|Strate]].<ref>{{cite web |url=http://www.clearstream.com/blob/11358/2bc37b359ab16dd3e481528735430dd5/liquidity-alliance-brochure-data.pdf |title=Archived copy |access-date=2015-05-07 |url-status=dead |archive-url=https://web.archive.org/web/20150518085605/http://www.clearstream.com/blob/11358/2bc37b359ab16dd3e481528735430dd5/liquidity-alliance-brochure-data.pdf |archive-date=2015-05-18 }}</ref>

===Investment Fund Services===
Clearstream has developed the world's largest cross-border fund processing platform, called Vestima.<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/investment-funds-services/vestima |title=Vestima |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323202834/http://www.clearstream.com/clearstream-en/products-and-services/investment-funds-services/vestima |archive-date=2015-03-23 |url-status=dead }}</ref> It handles all types of funds, from [[mutual fund]]s to [[exchange-traded fund]]s (ETFs) and [[hedge fund]]s.

In addition to providing access to all fund types, Vestima supports their cross-border distribution. Services offered by Vestima include order routing, centralised [[delivery versus payment]] (DVP) settlement, safekeeping, asset servicing and collateral management.<ref>{{cite web|url=http://www.clearstream.com/clearstream-en/products-and-services/investment-funds-services|title=Investment Fund Services|website=Clearstream.com|access-date=1 August 2018}}</ref>

===Issuance===
Source:<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/issuance--1-/ |title=Issuance |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150518085510/http://www.clearstream.com/clearstream-en/products-and-services/issuance--1-/ |archive-date=2015-05-18 |url-status=dead }}</ref>

ICSDs and CSDs are often used to [[Primary market|bring a security issue to the market]], as they possess the necessary infrastructure for distributing the securities to the investors as well as for settlement and safekeeping. Clearstream's ICSD also provides custody services, which means that the security can be serviced throughout its entire lifecycle. Clearstream provides the infrastructure which enables issuers to reach investors worldwide.

Clearstream's services include eligibility assessments, issuance and distribution of domestic, foreign and international (i.e. Eurobonds) new issues of global and domestic instruments: [[certificates of deposit]], [[depositary receipt|depository receipts]], [[United States Treasury security#Treasury bill|treasury bills]], [[commercial paper]]s, short-term and medium-term notes, [[bond (finance)|bonds]], [[equity (finance)|equities]], [[warrant (finance)|warrants]], equity-linked notes and investment fund shares.

===Settlement===
Source:<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/settlement |title=Settlement |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323180717/http://www.clearstream.com/clearstream-en/products-and-services/settlement |archive-date=2015-03-23 |url-status=dead }}</ref>

Clearstream's ICSD settles trades in international securities and in domestic securities traded across borders. The CSDs settle domestic transactions in the German and Luxembourgish markets. Transactions between the two ICSDs Clearstream Banking SA and Euroclear Bank are settled via an electronic communications platform, called the Bridge.<ref>{{Cite web |url=http://www.clearstream.com/clearstream-en/products-and-services/settlement/commercial-bank-money-settlement--icsd-/settlement-overview/bridge |title=Bridge |access-date=2015-05-07 |archive-url=https://web.archive.org/web/20150323194442/http://www.clearstream.com/clearstream-en/products-and-services/settlement/commercial-bank-money-settlement--icsd-/settlement-overview/bridge |archive-date=2015-03-23 |url-status=dead }}</ref>

Clearstream operates a delivery versus payment settlement system, ensuring simultaneous settlement of securities and cash transfers on a gross (trade-by-trade) basis. This helps to minimise the risk associated with the settlement of securities.<ref>{{cite journal|url=http://www.bis.org/cpmi/publ/d101.htm?|title=Principles for financial market infrastructures|date=16 April 2012|website=Bis.org|access-date=1 August 2018}}</ref>
== Clearstream and Iranian oil revenues ==
In the late 2000s, it was revealed that Clearstream held approximately $2.8 billion in securities on behalf of the [[Central Bank of Iran]] (CBI) through an account in the United States. This arrangement potentially violated U.S. sanctions against Iran, leading to legal scrutiny.<ref name=":0">{{Cite web |date=2025-02-08 |title=Treasury Department Reaches Landmark $152 Million Settlement with Clearstream Banking, S.A. |url=https://home.treasury.gov/news/press-releases/jl2264?utm_ |access-date=2025-05-06 |website=U.S. Department of the Treasury |language=en}}</ref><ref>{{Cite web |title=Clearstream |url=https://www.unitedagainstnucleariran.com/company/clearstream?utm_ |access-date=2025-05-06 |website=UANI |language=en}}</ref>

In 2014, Clearstream agreed to a $152 million settlement with the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) for these violations. The settlement addressed Clearstream's role in providing the Iranian government with unauthorized access to the U.S. financial system by holding securities for the CBI.<ref name=":0" /><ref>{{Cite web |title=U.S. Executive Order: New sanctions against Iran |url=https://www.clearstream.com/clearstream-en/securities-services/settlement/u-s-executive-order-new-sanctions-against-iran-1297410 |access-date=2025-05-06 |website=www.clearstream.com}}</ref><ref name=":1">{{Cite web |date=2014-03-13 |title=Clearstream Banking Pays $151.9 Million for Transferring Funds to Iran through the U.S. |url=https://www.learnexportcompliance.com/clearstream-banking-pays-151-9-million-for-transferring-funds-to-iran-through-the-u-s/?utm_ |access-date=2025-05-06 |website=Export Compliance Training Institute |language=en-US}}</ref>

=== Legal Disputes Over Frozen Iranian Assets ===
Beyond the settlement, Clearstream has been embroiled in ongoing legal disputes concerning Iranian assets frozen under international sanctions. In 2008, approximately $4.9 billion in Iranian assets were frozen by Clearstream following U.S. pressure. Subsequent legal actions have sought to release or claim these funds.<ref name=":2">{{Cite news |last=Schmid |first=Fidelius |date=2025-03-06 |title=Military Funding: Iran Seeks to Access Billions in Frozen Hard Currency |url=https://www.spiegel.de/international/world/military-funding-iran-seeks-to-access-billions-in-frozen-hard-currency-a-d9fbf1de-e5a4-4a59-a845-b52469203aa1?utm_ |access-date=2025-05-06 |work=Der Spiegel |language=en |issn=2195-1349}}</ref>

Notably, in 2018, Iran's central bank sued Clearstream to recover the frozen assets. However, U.S. courts have ruled in favor of using portions of these funds to compensate victims of terrorist attacks attributed to Iranian-backed entities, such as the 1983 bombing of the U.S. Marine barracks in Beirut.<ref name=":0" /><ref name=":1" /><ref name=":3">{{Cite news |date=2025 |title=Iran seeks frozen funds in Europe after military setbacks - Der Spiegel |url=https://www.iranintl.com/en/202503065055?utm_}}</ref>

=== Involvement of Sepehr Energy ===
Sepehr Energy, an Iranian state-affiliated oil company, has been implicated in efforts to access the frozen funds held by Clearstream. Reports indicate that executives from Sepehr Energy have been involved in legal and diplomatic initiatives aimed at reclaiming these assets. The company has also been sanctioned by the U.S. for allegedly facilitating oil sales that fund Iran's military and associated groups.<ref name=":2" /><ref>{{Cite web |last=Nava |first=Victor |date=2025-02-07 |title=Trump admin sanctions ‘front company’ selling oil to China to allegedly fund Iranian military and terrorist groups |url=https://nypost.com/2025/02/06/us-news/trump-admin-sanctions-front-company-selling-oil-to-china-to-allegedly-fund-iranian-military-and-terrorist-groups/?utm_ |access-date=2025-05-06 |language=en-US}}</ref><ref name=":3" />


==Leadership==
* {{ill|Edmond Israel|lb}}, Cedel Chairman 1970-1990
* {{ill|André Lussi|fr}}, Cedel Managing Director 1989-1999 and Clearstream CEO 2000-2001
* Hans Angermüller, Cedel Chairman 1990-1994
* Robert Douglass, Cedel Chairman 1994-1999 and Clearstream Chairman 2000-2004
* André Roelants, Clearstream CEO 2001-2004 and Chairman 2004-2010
* [[Jeffrey Tessler]], Clearstream CEO 2004-2015 and Chairman 2015-2018
* [[Stephan Leithner]], Clearstream Chairman 2018-2024

==See also==
* [[Clearstream affair]]
* [[Majid Azami]]
* <bdi>[[Sepehr Energy Jahan]]</bdi>
* <bdi>[[Persian Gulf Star Oil Company (PGSOC)]]</bdi>
* [[Jey Oil Refining Company]]

==References==
{{Reflist}}

==External links==
*[http://www.clearstream.com Clearstream's website]

[[Category:Capital markets of Europe]]
[[Category:2000s in France]]
[[Category:Payment systems]]
[[Category:Luxembourgian companies established in 2000]]
[[Category:Central securities depositories of Europe]]
[[Category:2000 in Luxembourg]]

[[ar:قضية كليرستريم]]