Euroclear Half Year 2015 Operating Performance
Increased client activity levels and favourable market conditions
support robust first half operating results
Brussels, 17 July 2015 – The Euroclear group reports a robust operating performance for the first half of 2015, benefitting from increased client activity across all business lines and favourable market conditions during the period. A record high of EUR 28 trillion client assets held in safekeeping reinforces Euroclear’s position as the industry’s trusted provider of open post-tradeinfrastructure, market safety and operating efficiency.
The key operating results for the group during the first half of 2015 include:
- The value of securities held on behalf of Euroclear clients grew by 11%, compared with the prior year period, to a record EUR 28 trillion
- Turnover, the value of securities transactions settled, was EUR 339.3 trillion; a 10% increase on the prior year period
- The number of netted transactions settled in the Eurocleargroup grew by 6%, compared with the prior year period, to almost 97 million
- Euroclear’s Collateral Highway mobilised an average of EUR 971 billion of collateralised transactions daily; a 10% increase over levels reported at the previous year-end. During the period, collateral outstanding peaked at a record level of over EUR 1 trillion
- The value of funds serviced by FundSettle increased 17% over the prior year period, and the volume of fund transactions processed by the group grew 18% to reach 11.4 million
Tim Howell, Chief Executive Officer of the Euroclear group, said: “Euroclear has delivered another robust operating performance in the first half of 2015, benefitting from prior investments in both traditional products and new services such as the Collateral Highway.”
He added: “We continue to invest in supporting the development of efficient and stable capital markets while delivering the regulation-driven initiatives in our core European franchise, as well as capabilities and services that extend client value around the world.
”Euroclear continues to progress its plans for the implementation of TARGET2-Securities (T2S), the European Central Bank’s common securities settlement platform. While we are closely monitoring the impact of delays in Wave 1, Euroclear’s ESES CSDs (in Belgium, France and the Netherlands) have now begun strategic testing ahead of Wave 2 in March 2016. Euroclear Finland launched the first release of a new technology infrastructure named ‘Infinity’, bringing the Finnish market one step closer to T2S ahead of its scheduled migration in 2017. Euroclear remains committed to making the transition to T2S as straightforward and safe as possible for its clients, giving them flexibility of access to all T2S markets via the ICSD, Euroclear Bank, or the group’s national CSDs.
The Collateral Highway continues to build momentum, helping clients from around the world to navigate through the changing regulatory landscape, as well as accessing liquidity and mobilising collateral. Average daily collateral outstanding has risen by 10% since the end of 2014 to EUR 971 billion, peaking at over EUR 1 trillion during the period. Last year the group established a landmark joint venture with the Depository Trust & Clearing Corporation (DTCC-Euroclear Global Collateral Ltd). Through this partnership Euroclear is engaging and collaborating with a range of market participants to develop an open architecture industry solution to access and streamline the processing of collateral worldwide.
Euroclear made further progress with the expansion of its international ETF structure. During the first half of 2015, Euroclear’s international ETF structure was selected by the China Construction Bank (CCB) for the first ever RMB-denominated money market international ETF, with listings completed in London and Paris. Thereafter, Euroclear strengthened its partnership with the CCB through a Memorandum of Understanding (MoU) to continue supporting the globalisation of offshore RMB markets. Reflecting its historic importance, Euroclear and CCB representatives were joined at the signing of the MoU by the Premier of the State Council of the People's Republic of China, Li Keqiang, and the Belgian Prime Minister, Charles Michel.
The group also continued to bring to market innovative solutions that encourage efficiency in post-trade processes. For example, SetClaim is a new service that enables banks and brokers to automate elements of their cash receivables and payables processes throughout the claims lifecycle.