Euroclear is a user-owned, user-governed
Brussels, Belgium-based financial services company that specializes in the settlement of securitiestransactions.
It was founded in
1968as part of J.P. Morgan & Co.Euroclear settles domestic and international securities transactions, covering bonds, equities, derivatives and investment funds. Euroclear provides securities services to financial institutions located in more than 80 countries.
In addition to its role as an International Central Securities Depository (ICSD), Euroclear also acts as the
Central Securities Depository(CSD) for Belgian, Dutch, French, Irish, and UK securities. Euroclear also owns EMXCo, the UK's leading provider of investment-fund order routing.
Euroclear is the largest international central securities depository in the world.
Early History (1968-2000)
From its creation in
1968until the end of 2000, the Euroclear System was operated by the New York State bank Morgan Guaranty Trust Companyof New York(MGT), via the Belgian branch of that establishment, which had a branch of activities (“ Euroclear Operations Centre”) specially dedicated to the operation of the Euroclear system.
MGT transferred this branch of activities to Euroclear Bank, a Belgian credit institution that was set up in
2000to operate the Euroclear system.
Euroclear has a non-exclusive partnership with
Euronext(resulting from the merger of the stock exchanges of Paris, Amsterdam, Lisbon and Brussels), which enabled Euroclear in 2001to acquire 100% of the capital of Sicovam, the French CSD, in 2002100% of the capital of Necigef, the Dutch CSD, and in 2007, 100% of CIK, the Belgian CSD. Euroclear also took a 20% stake in the capital of LCH.Clearnet, the UK/French entity responsible for the clearing of Euronext, London Stock Exchange and other stock exchange transactions. Since December 2000, Euroclear has also assumed responsibility for the settlement of Irish government bonds ( Gilts) following the decision of the Irish government and the Central Bank of Irelandto delegate this activity to Euroclear. In September 2002, Euroclear acquired 100% of the capital of CRESTCo, the CSD for UK securities and Irish equities, which now operates as Euroclear UK & Ireland. Intent to acquire NCSD announced in June 2008
In 2002, Euroclear announced a new initiative to reduce the cost of settling cross-border securities transactions in Europe. It proposed to consolidate into one all five of the processing platforms used by the international and national CSDs within the Euroclear group. In addition, Euroclear proposed to harmonise market rules and practices within these markets, in line with the European Commission's Giovannini Group recommendations, the result of which would deliver to its users more than 300 million euros per year in back-office savings. The first milestone, the Single Settlement Engine, was completed in early 2007; the second phase called ESES (Euroclear Settlement of Euronext-zone Securities) is scheduled for completion at the end of 2008. The final phase, where all Euroclear group processing activity would take place on a Single Platform, is planned for completion in 2011. All Euroclear group clients would also use a Common Communications Interface to communicate with the Euroclear CSD of their choice.
Euroclear groupreshaped its corporate structure in 2000 and 2001, transforming the Belgian company Euroclear Clearance SystemSociété Coopérative into Euroclear BankSA/NV, which now operates the Euroclear Systemand provides the services previously contracted to Morgan Guaranty Trust Company of New York, Brussels branch. In 2005, a new Belgian holding company, Euroclear SA/NV, was created as the owner of all the shared technology and services supplied to each of the Euroclear CSDs and the ICSD.
Euroclear SA/NV is owned by
Euroclear plc, a company organised under the laws of Englandand Wales(owned by market participants).
Both Euroclear plc and Euroclear SA/NV have independent Boards of Directors composed of representatives of Euroclear users (major securities market participants), and of former shareholders of merged companies (
Euroclear Franceand Euroclear UK & Ireland).
The Euroclear plc Board makes the strategic decisions for the group. It decides in particular on the strategic investments and on joint ventures and alliances. Shareholders’ voting rights are limited to 5%. The Board is assisted by several committees comprising Non-Executive Directors. The Euroclear SA/NV Board has 24 Directors, all of whom are Non-Executive Directors and are also members of the Euroclear plc Board. The Euroclear Boards set the policies and objectives of the Euroclear group, ensure their implementation by the Management Committee, and review its performance. These policies include, among others, pricing, risk management, and membership admission.
The Euroclear group serves clients from more than 80 different countries. Most are banks, broker-dealers, and other institutions professionally engaged in managing new issues of securities, market-making, trading, or holding a wide variety of securities. Retail investors are able to have direct accounts in local CSDs, according to local laws, rules and procedures.
Incorporated in Belgium, Euroclear SA/NV is subject to the supervision of the
Belgian Banking and Finance Commission(BFC). In accordance with Article 8 of its Organic Law, the National Bank of Belgium( NBB) is in charge of the oversight of Euroclear SA/NV. Euroclear plc is also authorised as a service company by the Financial Services Authorityin the United Kingdom. Each of the Euroclear CSDs are regulated by the relevant authorities within their respective home countries.
* [http://www.euroclear.com Euroclear portal]
Wikimedia Foundation. 2010.
Look at other dictionaries:
Euroclear SA/NV — The parent company of the group (I)CSDs. Euroclear SA/NV owns the group s shared securities processing platforms and delivers a range of services to the group s depositories, including development of its technology platform. Euroclear SA/NV, a… … Euroclear glossary
Euroclear — est une société internationale de dépôt et de règlement/livraison pour les obligations, actions et fonds d investissement, créée en 1968 à Bruxelles. Elle est l un des deux dépositaires centraux internationaux de titres (International Central… … Wikipédia en Français
Euroclear — Bank SA Rechtsform SA Gründung 1968 Sitz Brüssel … Deutsch Wikipedia
EuroClear — созданный в 1968г. международный депозитарно клиринговый центр, обслуживающий внебиржевой международный фондовый рынок. Позволяет осуществлять мультивалютные расчеты. EuroClear выполняет функции клирингового центра, депозитария и расчетной… … Финансовый словарь
Euroclear — A clearing system which provides buyers and sellers of internationally traded securities with a method of settling transactions in such securities either free of or against payment in a wide range of currencies. It also provides custody services… … Law dictionary
Euroclear — Not used anymore; replaced by the Common Code on January 1, 1991. Company Extensions and Security Identifiers One of two principal clearing systems in the Eurobond market. It began operations in 1968, is located in Brussels, and is managed by… … Financial and business terms
Euroclear — One of two principal clearing houses for securities traded in the Euromarket. Euroclear specializes in verifying information supplied by two brokers in a securities transaction and the settlement of securities. Euroclear is market owned and… … Investment dictionary
Euroclear SA/NV — The parent company of the group ( I)CSDs. Euroclear SA/NV owns the group s shared securities processing platforms and delivers a range of services to the group s depositories, including development of its technology platform. Euroclear SA/NV, a… … Financial and business terms
Euroclear — Clearing System (⇡ Clearing) für größere internationale Transaktionen in Dividendenwerten. E. wurden 1968 von der Morgan Guaranty Trust Company im Zusammenhang mit der Errichtung der International Deposity Receipts (IDRs) entwickelt. Benutzer… … Lexikon der Economics
EUROCLEAR — клиринговая система расчетов между банками на вторичном рынке еврооблигаций и других ценных бумаг; одна из двух основных клиринговых систем на рынке еврооблигаций; действует с 1968 г. Находится в управлении Morgan Guaranty Bank (Морган Гаранти… … Словарь электронного бизнеса