Deutsche Börse’s digital post-trade platform D7, facilitated by service provider Clearstream’s infrastructure, has executed the first digital securities issuance in Germany.

The first automated issuances on the D7 platform were performed by universal bank LBBW and asset management group Vontobel.

Historically, German securities had to be issued as paper-based global notes up until last year when regulators passed the electronic securities act to allow dematerialised issuance.

This paved the way for automation in the securities lifecycle and the creation of digital instruments to allow for straight-through processing and asset servicing.

Since December 2021, Deutsche Börse has been processing dematerialised securities via a central register, the first live D7 component.

The platform aims to provide a fully digital alternative to conventional issuance for around 80% of German securities, including warrants and certificates, with further asset classes and jurisdictions planned in the future.

Jan Krüger

“With the first pilot issue of an LBBW bonus certificate via the D7 platform, accompanied by Clearstream, we are taking the next technologically important step towards end-to-end digitalisation,”

said Jan Krüger, Head of Equity Markets at LBBW.

Markus Schenk

“The launch of the Digital Instrument represents a milestone on the way to a fully digital market infrastructure in Germany. We at Vontobel are proud to accompany the project from the very beginning and to provide valuable input,”

said Markus Schenk, Head Issuance Europe, Vontobel.