Despite the Affairs no client has deserted

Luxembourg, Clearstream is not a case, but a society, or even an address. Just give this name to a taxi driver to lead directly to the 42 Avenue j.-f. - Kennedy. This artery of the Kirchberg plateau, dressed by the French architect Jean-Michel Wilmotte, is the new financial showcase in the Grand Duchy. Along its 3.5 km, the buildings of large institutions, ABN AMRO, Fortis, General of Luxembourg bank, Deka Bank or even State Street, follow in a harmonious and functional modernism. "Square", headquarters of Clearstream, not style. In 2003, the subsidiary of Deutsche Börse is brought together its activities. "We were distributed until then on 15 sites in the capital", says Bruno Rossignol, spokesman for the company. Four small buildings component as a whole, only two are dedicated to Clearstream teams. It occupies the "KA", and the business is to base the "KB". Others are leased to third parties, including the European Court of justice.

At the time of the move, Clearstream, translate "current clear", already has a reputation as a disorder from the financial sphere. In 2001, "Revelations", and then, in 2002, "Black box", the two books of the investigative journalist Denis Robert, associated in the first branch to Ernest Backes, a former Executive of licensed Clearstream in 1983, describe the operation of an extensive network of laundering of money which the company is the hub. Defending himself, the leaders of this supposed "large washer" multiply defamation complaints, and distill a few releases. But keep answer point by point the charges or to explain the operation of the company. Error! "We still pay the price of this lack of communication," said Bruno Rossignol. The stock market is already fantasize public opinion. Then, when is it revealed the existence of an underground world in which operates Clearstream, suspicion is naturally last.

"A both plumbers and notaries"

The execution of an order of fellowship is not just its simple execution. Downstream, there is the accounting treatment. He began by compensation. If both institutions have negotiated several times the same title during a trading session, the Compensator calculates the balance of the traded securities and the amount at the end. For example, the bank acquired the final 300 shares Y broker B, receiving in Exchange 5,000 euros. Then the settlement occurs. This is where specifically Clearstream. He received the details of orders and instructions of clients. He credits the account of the first of 300 shares Y and the second of 5,000 euros. Then institutions transfer these securities and money to their customers. The Luxembourg Group provides daily outcome of 160,000 transactions on markets 40. It generally occurs three days after the execution of the order, after that, to avoid validation of incorrect operations, instructions of the two parties have consistently faced. "There must be agreement on the thing and the price," said in Clearstream.

"We are both of the plumbers who assemble piping of institutions, and notaries guarantors of the good end of operations," explains Michel Barbancey, Director for the South of Europe. In the jargon, Clearstream is a central depositary of securities for the international (ICSD). And it is not the only one in Europe. "I'd said." With these stories, people forget that we have a competitor Editor's note, Euroclear. Yet, we fight the same customers on the same segments of business.

The "Revelations" book created scandal in portraying Clearstream as a tool of money laundering. "Luxembourg justice it is seized of the matter, said its President, André Roelants. But she has not sought to stifle it, as some have denounced it. "Management and his boss at the time, André Lussi, were suspended temporarily in May 2001, and then in July permanently. The same year, the company is a series of audits by KPMG, Arthur Andersen and Deloitte, which transmit their results to the regulators, namely the monitoring of the financial service (CSSF) Commission and the Central Bank of the Luxembourg, as well as the Prosecutor's Office. November 30, 2004, it closed its information. Without having found evidence of money laundering, double accounting, fraud or misconduct, it washes society of suspicion.

With André Roelants, called to replace André Lussi, the communication has been changed. "We decided to talk about, explain what we do," he said. Yet, this is not yet sufficient. In 2004, a second scandal in France. Several personalities from the world political and economic (Nicolas Sarkozy, Alain Gomez, Dominique Strauss-Kahn, Alain Madelin,...) are suspected to have received illicit commissions in the case of the sale of French frigates to Taiwan. The name of Clearstream is involved in this case, after sending to justice from a list of accounts, from his home.

Clients handpicked

"According to our rules, we have no accounts of individuals, pounding Michel Barbancey. Our customers are 2,500 banks and financial institutions. "Twenty-eight Central banks are part of the lot. However, a derogation was granted to 4 companies: "Shell, Unilever, Siemens and Capital Lease Group.". Large emitters on the Eurobond market. ""List of accounts ".

"has always been on the site, even if, since 2005, need to register and use a password", he said. Certainty: "It is like nothing the listings sent to the judge." "We do not use Excel to the present", adds Stéphane Deschamps, responsible for operations ICSD.

All deposit accounts weighed 600 billion euros on December 31. And "today, more than 9,000 billion", cowardly Bruno Rossignol. With the settlement activity, that of bailee provides 90 of the turnover of the subsidiary of Deutsche Börse.

In Clearstream, does not have an account who wants to. "The client must be a bank or a broker, controlled by the authorities of his country," stresses Michel Barbancey. By opening an account, we give it as a pledge of international credibility. "With a prerequisite: its financial situation must be strong because, says," we do him permanent advances in cash due to the delay in outcome of operations ". Once the account is opened, the surveillance does not relaxes. "Each year, institutions that are originating from a country outside the Group of financial action task force on money laundering (1) must respond to a questionnaire of compliance." We encounter them, check the legality of their operations and that they do not have bad press, he says. Others deemed at risk, require increased surveillance. "As early as 2001, Clearstream is a signatory to the U.S. Patriot Act, designed to hunt down terrorist money. "We often refuse accounts, and even close", says Director for southern Europe.

With the scandal, Deutsche Börse, become the sole shareholder of the company in 2002, remained stoic. André Roelants analysis: "leaders saw that the problem was purely franco-français, as the media outside the hexagon have not talked about." "That Clearstream was not equated with Deutsche Börse and that this did not affect our activities." In addition, the contribution of the service provider post-trade in the profits of its parent having not diminish about 40, there is no risk in the home. A Luxembourg, employees do not include this hard. As the matter turns to the settlement of accounts in the French Government, "while magistrates instructors have closed their investigation in January, concluding a manipulation", says Bruno Rossignol.

Despite the Affairs, no client has deserted. "Initially, the banks have logically asked what was going on." We explained them, says André Roelants. On the latest developments, we mostly received messages of compassion. "If the company says not to lose customers, it has certainly been victim of lack to win, difficult to quantify. "Banks have perhaps slowed their operations here." "And financial institutions of countries that are opening up the international were perhaps reluctant to come," advance Michel Barbancey. Professional reputation, the essential question is preserved. This year, the magazine press, "Global custodian" and "Global Investor", rewarded the Luxembourg body, such as better ICSD. As agencies rating, Standard & Poor's and Fitch, they he maintained an AA. Therefore, step question of change of name, even if André Roelants is referred an amused in an interview with AFP in April. "The mark suffered no damage in the environment." "Change of name would require significant investments", he says today.

"Piping" sophisticated

It is technically that Clearstream has the most to fear. Its business through its piping, object of attention. Its computer system, Creation, cost EUR 400 million and required six years of development. "Today, we have not been pirated", take pride teams. A Luxembourg, the company employs more than 500 it professionals, half of its workforce on the spot, to produce and develop applications. The tool is modern and rare manual interventions. The "command center", with its myriad of control screens, verifies the proper operation of the computer rooms. "A disruption would have serious consequences for us, concedes Stéphane Deschamps.". But, like all financial institutions, we have, out of town, a "back-up" fed in real time.

The Group maintained the priority given to the proper functioning of its facilities. However, since four years, he understood that he should also make work of teaching press and French policies destined to restore its image among the public. As his name is not stay legal topics. The first case is not completed. It will again occupy the judicial stage in December. Denis Robert was in effect an appeal after his two sentences for defamation, in March 2004, one on his book "Revelations" and the other his documentary broadcast on Canal , "The Dissimulateurs". The Luxembourg group, for his part, after having been dismissed in October 2003, wants to see his libel complaint lead against the writer and his publisher for the book "Black box". In the second case, Clearstream filed a complaint for forgery and use of forgery with civil constitution, April 28.

The image of "The great flower" walking of Fernand Léger, planted in his Luxembourg "Square", Clearstream continues to move forward. Only the evolution of market Europe seems to be able decide its fate.