Clearstream Banking has announced that starting on March 3, 2025, LCH Ltd (LCH) EquityClear will begin settling International Central Securities Depository (ICSD)-issued Exchange Traded Products (ETPs) directly within its system, specifically under account 85068. This adjustment applies to transactions with counterparties who possess Clearstream Banking S.A. (CBL) or Clearstream Banking Frankfurt (CBF-i) accounts.
For trades executed prior to the implementation date, all settlements will continue to be processed through LCH’s current settlement agent using account 64449, similarly to existing processes.
Clearstream facilitates the settlement of a variety of securities across different exchanges and Multilateral Trading Facilities (MTFs). Notably, this includes ICSD-issued ETPs, which encompass Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs), and Exchange-Traded Commodities (ETCs).
Clearing members utilizing CBL or CBF-i accounts and planning to grant LCH a Power of Attorney (PoA) are required to finalize the PoA documentation. To ensure that the new settlement process is effective by the implementation date, these members must submit the completed PoA to Clearstream Banking by February 21, 2025.
Additionally, interoperable central counterparties (CCPs) are advised to pay attention to any changes concerning LCH’s standing settlement instructions (SSIs) related to this transition.