This communication provides the latest update in relation to Euroclear UK & Ireland’s ability to continue to offer Euro settlement from 29 March 2021, when the existing arrangement with the ECB allowing Euroclear UK & Ireland access to TARGET2 is scheduled to expire.
Euro settlement update
As stated in the CREST Reference Manual, Euroclear UK & Ireland’s current arrangements for Euro settlement with the ECB are scheduled to expire on 29 March 2021.
Euroclear UK & Ireland is in contact with the ECB regarding this service and has submitted a formal request to seek the ability to retain Euro settlement following the expiration of the existing arrangements.
Euroclear UK & Ireland cannot guarantee that ongoing access to Euros under the current central bank money model arrangement will be available after 29 March 2021 and therefore continues to make plans for if such access is not granted.
We intend to share more details in the coming months should continuation of existing arrangements not be forthcoming. In the meantime, Section 3.3 of the August 2018 consultation paper Potential Brexit Impacts: Irish Securities Settlement and Euro Settlement describes possible impacts of a cessation of Euro settlement.
In the run up to the UK’s exit from the EU, and during the transition period, we have issued a number of consultations and notifications which are available on our website.
If you would like to discuss the above, please contact your Euroclear Relationship Manager who remains available to assist.