22 January 2015
Reporter: Stephanie Palmer

Euroclear reports record-breaking 2014

Euroclear has reported a record high in assets under custody for 2014, reaching €26 trillion, a 7.4 percent rise on 2013.

This result comes as part of a generally successful year for Euroclear. It also saw an all-time high of €633.6 trillion in the value of securities processed, a 10.6 percent increase on 2013, and a 12.1 percent rise in collateral outstanding on its Collateral Highway, which reached €883.1 billion.

The number of netted transaction settles also grew by 6.6 percent to reach a record number of €181.6 million.

The value of funds serviced by FundSettle increase by 18 percent compared to 2013, while the volume of fund transactions processed by the group rose by 13 percent to reach 20 million.

Fund orders routed through Euroclear’s UK and Ireland EMX Message System increased by 33 percent, to reach another record high of 65 million messages in 2014.

CEO Tim Howell said: “Euroclear remains a leading market infrastructure that is relevant, reliable, resilient and profit moderated. Our performance over 2014 strengthens Euroclear’s pre-eminent role within the global post-trade ecosystem, and we remain well-positioned for future growth opportunities both in Europe and around the world. We want to thank our clients for the business they entrust with us, and we look forward to working together again in the year ahead.”

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

In June 2014, Euroclear acquired a stake in Euronext, a investment designed to offer closer proximity to its community and to strengthen Euroclear settlement for its Euronext-zone Securities franchise.

It also joined with the Depository Trust and Clearing Corporation (DTCC) and launched the joint venture company DTCC-Euroclear Global Collateral Limited in September 2014. The collaboration aims to deliver greater operational efficiency, improving the stability of financial markets.

During the year it expanded the range and involvement of market participants connected to its Collateral Highway, easing collateral sourcing and mobilisation while increasing transparency and asset protection for all participants.

Euroclear also saw progress with its ETF structure, launched with BlackRock in 2013. In 2014, the structure was adopted by Pimco and State Street, who now have listings on Euronext and the London Stock Exchange.

It also began T2S testing in late 2014, as well as building on its franchise around the world.

It made Panamanian government bonds, Mexican corporate bonds, Russian municipal and corporate bonds and equities, while Taiwanese-issued RMB bonds were made available for settlement via Euroclear’s links to their respective domestic CSDs.

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