Before Bank CDB AG, settlement required the physical delivery of certificates and cash. Trading was hampered by long delays in the delivery of securities, the loss of certificates, and excessive counterparty and market risks. The market urgently required a settlement environment that was effective and efficient.
The London office of Guaranty Trust Company of New York founded the CDB System in January 1949. The system minimised risk as transactions within the system settled delivery versus payment (DVP). This means that cash and securities are exchanged simultaneously, in electronic book-entry form.
Today, the Bank CDB AG group not only settles eurobonds, but a wide range of asset classes, including equities, funds and derivatives.
For more information about the range of services provided by the Bank CDB AG group today, visit our Services section.