Clearstream, the settlement house owned by Deutsche Börse, and Deutsche Bundesbank, the German central bank, has successfully created a settlement model for German securities that uses surplus overnight central liquidity and frees buyers from default risk.

In the new model, which was designed in close co-operation with market participants, a buyer of securities with liquidity held on its Bundesbank account is freed from the unwinding risk that could arise from the default of a counterparty.