1. Clearstream - Delivering solutions to industry challenges today & tomorrow Market trends and solutions provided in partnership
ACSDA Assembly
May 2016

2. Client: XXXXXX Title: XXXXXXX
The “Markets Company”: Clearstream is an integral part of Deutsche Börse Group
Trading, listing, infrastructure partnerships
Cash markets
Open settlement model
Derivatives markets
Fixed income markets
Investment Fund markets
Settlement, custody and securities financing
OTC
ETFs
On exchange
Clearstream is the only global combined ICSD/CSD positioned at the core of an exchange group
AA-rated entities providing services along the entire processing chain of a securities transaction
Based in two AAA rated countries: Luxembourg and Germany
Leading global collateral management
Multi asset class account for bonds, equities, mutual funds, ETFs, hedge funds
Central Counterparty Services
July 30, 2019

3. Client: XXXXXX Title: XXXXXXX
Financial institutions face heavy burden of regulatory constraints post financial crisis
Risk-based capital requirements
Leverage-based capital requirements
Basel III restrictive capital definition
New credit risk charges
Basel III minimum leverage ratio
Leverage exposure stress tests
Business portfolios of financial institutions
Collateral requirements
Operating cost pressure
EMIR clearing requirement for standardized OTC derivatives
Initial Margin Segregation
Redesign of operating models
Central execution/ clearing connectivity
Monitoring, reporting infrastructure
Compliance requirements
Liquidity rules
Basel III LCR and NSFR
Intraday liquidity requirements
Liquidity stress tests
Financial resource optimization has become a strategic imperative
Source: Oliver Wyman analysis

4. Clearstream’s Global Liquidity Hub
Client: XXXXXX Title: XXXXXXX
Clearstream’s Global Liquidity Hub
The regulatory emphasis on collateral
It is at the core of all global financial initiatives:
A key component for stress test resilience (CeBM, HQLA)
Mandatory usage when accessing centrally cleared products
Promoted as the primary mitigator of bilateral counterparty risk (BCBS-IOSCO)
Leverage Ratio
LCR / NSFR
Risk Weighted Assets (RWA)
Netting
Balance sheet optimization
Collateral opportunities
Capital
Netting
Term
Leverage
Liquidity
Risk Decisions
(Counterparty / Haircut)
30 July 2019

5. Clearstream’s Global Liquidity Hub
Client: XXXXXX Title: XXXXXXX
Clearstream’s Global Liquidity Hub
Collateral mobility central to our strategy
Collateral
Managing liquidity
Optimizing collateral
Central Clearing
Uncleared margin
Focusing on key areas that are important to our clients:
Making it easier for clients to manage liquidity
Helping you to optimize collateral
Supporting central clearing efficiently
Introducing new services to support uncleared margining
Global Liquidity Hub solves for a fragmented collateral landscape
30 July 2019

6. Clearstream’s Global Liquidity Hub
Client: XXXXXX Title: XXXXXXX
Clearstream’s Global Liquidity Hub
…tap into fragmented pools of collateral
Asset protection and ‘to big to fail’ remain the central themes:
Impacts the entire custody value chain
Increasing use of collateral across trading, clearing and credit layers
Legal differences between jurisdictions
Key is unlocking access to your collateral pools
Investor
Investor
Investor
MTF
Other Financial Intermediaries
CCP
Agents Banks and Custodians
CCBM
Investor CSD
Central Bank
Issuer CSD
30 July 2019

7. Securities and collateral mobility
Client: XXXXXX Title: XXXXXXX
Securities and collateral mobility
Developments in infrastructure
Infrastructure holds the key to a robust collateral framework:
Some initiatives point towards harmonization e.g. T2S
Others point towards partnership e.g. Liquidity Alliance
The ability to interoperate in a competitive landscape
Plug and play solutions
LH Classic
LH GO
LH Connect
Client inventory location
Clearstream
CSD
Agent bank
Custodians
Settlement model
Internal
Domestic
Book-entry*
(sell-side)
Current Partners or Venues
ASX
CDS
Cetip
Iberclear
SGX
Strate
VPS
CBL
CBF (T2S)
BP2S
Citi
SCB DB
Future Service Extension
Interoperable
(other Triparty systems)
International
Buy-side
Interoperable
(LH Alliance)
30 July 2019

8. Vestima – An introduction to our funds solution
Results of Sales & RM Team 2014
7/30/2019
Vestima – An introduction to our funds solution
Just under 2 EUR trillion Mutual and Hedge fund assets deposited in Clearstream
Over 200,000+ funds covered (from around 1,000 asset managers in 37 fund jurisdictions)
Around 1,000 financial institutions in over 100 countries use Vestima as a unique venue for funds processing (ETFs, hedge funds, mutual funds)
Customer segments: CSD’s, universal, private, and retail banks plus global and local custodians, asset managers, fund platforms and other Institutional investors
Facts & Figures
Investors
Vestima®
Issuers
Distributor banks (private, retail and universal banks) and global custodians
Asset managers (and their custodian banks), pension funds, insurances, fund platforms, etc.
Order routing and centralised settlement for international investment funds (mutual funds, hedge funds, alternative funds and ETFs)
Custody, Corporate actions, Reporting
Transfer agents
Hedge fund administrators
CSDs
Trading platforms
Stock exchange
30 July 2019 8

9. Investment Fund Services One-Stop-Shop Solution
Client: XXXXXX Title: XXXXXXX
Investment Fund Services One-Stop-Shop Solution
Model includes:
Centralized order routing
Settlement
Cash management
Reconciliation
Custody (corp action, dividends, etc.)
Reporting
CSD
Fund
Platform
Distributor
Custodian/
Banks
Broker
Mutual Hedge
Vestima
Vestima Prime
Transfer Agent
HF Admin
Mutual Fund Services
Order Routing
Custody and Settlement (CFF)
Hedge Fund Investor Services
Order Routing
Operating the Registrar Accounts
30 July 2019

10. Cross-border investments in LATAM
Winds of positive change
LATAM investors historically perform fund investments in local or regional securities
Domestic markets are small and liquidity can be very thin
Growth of pension schemes is leading investment managers to seek diversification via cross-border investments
Regulators are responding by increasing investment limits to allow broader offshore investment and risk diversification
UCITS and ETFs are most popular offshore investments.
LATAM investors access offshore investments via Vestima. Foreign investors access domestic LATAM funds via Vestima
30 July 2019 10

11. Client: XXXXXX Title: XXXXXXX
Our CSD Processing Model Partnering with the local market infrastructures
Transfer Agent A
CSD
Vestima
PTF A
Order desk
Order Routing B
PTF B C
PTF C D
PTF D E
PTF E
Settlement + Post Trade
Registrar A TA
a/c A
CBL
Account B B C C D D E E
International Market
Local
Institutions
CSD
Clearstream
30 July 2019

12. Vestima coverage Value-adding products for Distributors More Domiciles
Transfers
AIFMD
Reporting
Hedge Funds
Asia/Latam
T2S
Vestima 2016
More Domiciles
More Instruments
Value-adding products for Issuers

13. Client: XXXXXX Title: XXXXXXX