OeKB processes securities trades in Germany, makes complete settlement reports available and optimises settlement through effective risk management.
Post-trade processing in Germany
Delivery and payment of trades dealt on German exchanges are simply and conveniently posted to the customer's custody and cash accounts at OeKB. Customers thus save the cost and effort of an additional foreign custodian and extra accounts.
Processing of the delivery side of trades
Custody Clearing Link customers transact their securities trades in Germany either via the XETRA trading system of the Frankfurt stock exchange or on the trading floors of other German exchanges. OeKB posts the transactions to the CSD.Austria accounts of the market participants. OeKB also handles the processing of trades concluded on other trading platforms, such as CATS/OS or vwd TradeLink.
Processing of the payment side of trades
Payments for trades can be processed through the participant's account at Oesterreichische Nationalbank (the Austrian central bank) or at OeKB.
Processing of CCP and non-CCP transactions through OeKB
OeKB as a General Clearing Member (GCM) of Eurex-Clearing AG and as a clearing bank of Deutsche Börse AG processes both CCP trades (transactions routed through a central counterparty) and non-CCP trades. The securities positions are posted to OeKB's account as General Clearing Member (at Clearstream Banking Frankfurt and Clearstream Banking Luxembourg) and appear as a corresponding credit to the depositors' account at the CSD.Austria.
Detailed information on CCP and non-CCP transactions
Efficient risk management and effective collections
OeKB employs sophisticated risk management to protect against settlement risk and risk of default by the contracting parties in order to efficiently settle securities trades in Germany.
The customers of Custody Clearing Link deposit collateral with OeKB. The amount of collateral is dependent on the open, unsettled transactions between the trade date and value date, as well as any trades for which the value date has been rescheduled.
OeKB monitors the completion of "Aufgabe" transactions (name-to-follow transactions, i.e., where the counterparty is to be named later) ordered by customers of Custody Clearing Link. If required, OeKB duns the broker involved.
In the event of late delivery, OeKB issues collection letters electronically and by post to expedite the performance of the delivery obligations.