Euroclear
 | |
| Cooperative | |
| Industry | Finance |
| Founded | 1968 |
| Founder | J.P. Morgan & Co. |
| Headquarters | Brussels, Belgium |
| Products | Clearing House, Central Securities Depository, Custodian bank |
| Members | 2,000+ |
Number of employees | 3,500+ |
| Divisions |
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| Website |
www |
Euroclear is a Belgium based financial services company that specializes in the settlement of securities transactions as well as the safekeeping and asset servicing of these securities. It was founded in 1968 as part of J.P. Morgan & Co. to settle trades on the then developing eurobond market.
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 90 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, Finnish, French, Irish, Swedish 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)
The Euroclear System was operated by the Belgian branch of Morgan Guaranty Trust Company from its founding in 1968 until the start of 2001, when they transferred control to Euroclear Bank.[1]
Acquisitions (2001-present)
Euroclear acquired Sicovam (the French central securities depository or CSD) in 2001, and Necigef (Nederlands Centraal Instituut voor Giraal Effectenverkeer), the Dutch CSD, in 2002. It acquired Caisse Interprofessionnelle de Dépôts et de Virements de Titres (CIK), the Belgian CSD, in 2007. These local CSDs were renamed as Euroclear France, Euroclear Netherlands and Euroclear Belgium, respectively.
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. The CSDs of Finland (Suomen Arvopaperikeskus Oy (APK)) and Sweden (VPC AB), now operating as Euroclear Finland and Euroclear Sweden, respectively, were acquired by Euroclear in October 2008.
Governance
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.
Users
Retail investors are able to have direct accounts in local CSDs, according to local laws, rules and procedures.
Supervision
Each of the Euroclear CSDs are regulated by the relevant authorities within their respective home countries. Incorporated in Belgium, Euroclear SA/NV is subject to the supervision of the Belgium Financial Services and Markets Authority (FSMA). The National Bank of Belgium (NBB) also has oversight. Euroclear plc is authorised as a service company by the Financial Conduct Authority in the United Kingdom.
References
- ↑ "International payment arrangements" (PDF). CPSS Red Book. 2003. Retrieved 24 August 2015.