Clearstream records custody drop

Clearstream has reported a drop in total assets under custody (AuC) in its monthly report.

Total AuC for July stood at €13.03 trillion representing a 3.16% month on month decrease.

Its year to date figures also saw a drop in AUC with year to date figures in July standing at €13 trillion compared to the same period in July 2015 standing at €13.29 trillion.

In a further breakdown of its figures, volume outstanding of its global securities finance (GSF) stood at €539.81 billion representing a 10% month-on-month decrease.

Year-to-date figures in the GSF division also recorded a drop of 15% with its year to date GSF figures standing at €529.17 compared to €620.89 at the same point in July 2015.

In May this year during Deutsche Boerse’s earnings call, head of Eurex Clearing Erik Muller suggested that the Clearstream GSF division could face continuous declines in revenue as a result of negative interest rates in Europe.

Muller also suggested that a reduction in demand for its GSF products such as securities lending and collateral management would affect revenues in the division.