CDS Clearing & Depository Services Inc. announced that it will continue to offer the New York Link and DTC Direct Link services to its participants.

Pending changes to collateral requirements had sparked some fear that these services would no longer be viable. However, CDS said that, “After an analysis of the participant impacts of meeting expanded collateral requirements, all of the NYL and DTC Direct Link participants have indicated to CDS they will continue to subscribe to the NYL and DTC Direct Link services.”

It allows that a few of the smaller participants told CDS that they will be closing their link accounts within the next few months, but adds that this will not affect the viability of continuing the service.

“The positive response by CDS participants to work together in addressing settlement risks to support the continuation of the service demonstrates the value of CDS’s sponsorship to cross-border participants,” it said.

IE