Euroclear Reports Record AUC

Speed read: The Euroclear group reported another year of robust operating results in 2013. It says the operating highlights reinforce the strength of the group’s post-trade value proposition and underscore the support of its global client franchise in an increasingly regulated yet dynamic market landscape.

The key operating results for the Euroclear group in 2013 are:

• The value of securities held on behalf of Euroclear clients grew by over €1 trillion to a record €24.2 trillion representing a 5% year-over year increase

• The number of netted transactions settled in the Euroclear group grew by 7.1% to a record 170.4m

• Turnover, the value of securities transactions settled, was a record €572.8 trillion, a 5.8% increase over prior year

• Overnight cash deposits increased by 17% to €18.5bn

• Euroclear’s Collateral Highway mobilised an average of €787bn of collateralised transactions daily, a 12% increase over prior year

• The value of funds serviced by FundSettle increased by 18% year-over-year and the volume of funds transactions processed by the group grew by 16% to reach 17.6 million. Fund orders routed through Euroclear UK and Ireland’s EMX Message System increased by 19.5% to a record 49 million messages in this period.

Tim Howell, chief executive officer of the Euroclear group, says: “The market regards Euroclear to be a safe and resilient market infrastructure with the proven experience, agility and economies of scale to deliver operational efficiencies and develop markets locally and globally. We want to thank our clients for the business that they entrust with us, and look forward to doing more together as the industry continues to evolve.”

He adds: “We are focused on maintaining market stability, delivering the regulation-driven initiatives in our core European franchise and investing in capabilities and services that extend value to our clients.”

Euroclear says it successfully addressed the operational inefficiencies in the way Exchange-Traded Funds (ETFs) are issued and settled in Europe by introducing an international ETF structure. By partnering with BlackRock to create an ETF structure that uses a single European settlement location, the market will benefit from improved trading liquidity, a reduction in operational risk and lower transaction costs for end investors, it explains.

Euroclear says it also helped make Russian government bonds (OFZs), as well as corporate and municipal bonds, more accessible to international investors by launching a service allowing them to settle their trades and deposit their bonds with Euroclear Bank. This partnership with Russia’s National Settlement Depository to improve market access and boost global participation contributed to a fivefold increase in foreign holdings of OFZs, it calculates.

 

 

Related articles

Euroclear To Stand And Deliver

Euroclear Bank/Standard Chartered Broaden Collateral

EuroCCP Plumps For Euroclear

Aberdeen, Artemis, Schroders Entrust Settlement To Euroclear

iShares and Euroclear Bank Boost ETF Access