Euroclear Reports Robust 2015 Operating Results
Euroclear reports EUR 27.5 trillion in assets under custody, a record EUR 674 trillion in turnover and 20% growth in collateral outstandings
Brussels and London, 26 January 2016 - The Euroclear group today reports another year of robust operating results in 2015. Client assets held in safekeeping reached EUR 27.5 trillion, and the group delivered an all-time high of EUR 674.7 trillion in the value of securities processed as well as achieving a record level of collateral outstandings at over EUR 1 trillion. The continued progress shown in these indicators reinforces Euroclear’s pre-eminent role as the trusted provider of open post-trade infrastructure, market safety and operating efficiency.
The key operating results for the group in 2015 include:
- the value of securities held on behalf of Euroclear clients grew by 6% to EUR 27.5 trillion
- turnover, the value of securities transactions settled, was a record EUR 674.7 trillion; a 8% increase over prior year
- the number of netted transactions settled in the Euroclear group grew by 5% to a record 190.7 million
- Euroclear’s Collateral Highway mobilised an average of EUR 1,068 billion of collateralised transactions daily; a 20% increase over prior year
- the group’s fund strategy has made good progress in 2015 as Euroclear is increasingly regarded as the place for funds, with 12% growth in fund assets under custody. The value of funds serviced by FundSettle increased 17% over prior year, and the volume of fund transactions processed by the group grew 9% to reach 22 million
Tim Howell, Chief Executive Officer of the Euroclear group, said: “Euroclear has delivered another robust operating performance in 2015, benefitting from continued investments in both traditional products and new services such as the Collateral Highway.”
He added: “We continue to support the development of efficient and stable capital markets. We are resolute in our commitment to deliver the regulatory-driven initiatives in our European franchise, as well as providing new capabilities and services to clients around the globe.”
In October 2015, Euroclear announced that its ESES CSDs required more time than initially planned to ensure a safe and stable migration to the TARGET2-Securities (T2S) platform. Working closely with the ECB and wider CSD community, a revised migration schedule has been developed. Euroclear remains committed to T2S and has implemented a range of measures taken to secure its delivery of the project, including further investment in dedicated resources.
Euroclear is also replacing Euroclear Finland’s securities processing infrastructure with a new IT system, named Infinity. Infinity successfully completed its first major milestone through the launch of its fixed income platform in February 2015, with further developments scheduled for 2016. Euroclear Sweden also reached agreement in 2015 with its Swedish Market Advisory Committee, following a period of extensive market consultation, to replace that market’s CSD platform.
Building on the success of the Euroclear Collateral Highway, our joint venture with the Depository Trust & Clearing Corporation (DTCC) - DTCC-Euroclear GlobalColateral Ltd - is connecting two of the largest pools of collateral to provide a truly global, end-to-end collateral management solution. In 2016, the Collateral Margin Utility will be launched, bringing unprecedented operating efficiencies to market participants and improve the stability and soundness of financial markets.
In 2015, Euroclear began to expand its funds network outside of Europe, opening an account with the Central Money markets Unit of Hong Kong’s Central Securities Depositary, to provide Euroclear Bank clients with access to China-domiciled funds, as well as Hong Kong-domiciled funds. This move builds on Euroclear’s European franchise, where it is one of the largest providers of fund processing services, with over 12 million orders routed through our platforms annually.
Elsewhere in Asia, Euroclear established a historic partnership with the China Construction Bank to further support offshore Renminbi capital markets. Working closely with the China Construction Bank, the group supported the launch of the first ever RMB-denominated money market international ETF, listed in London in March.
Euroclear made further progress in strengthening its franchise around the world, with continued success in bringing ‘Euroclearability’ to domestic capital markets that might otherwise have limited access to global participants. Euroclear reached agreement with the Ministry of Finance and the Reserve Bank of India to support the growth and stability of their market by providing access to India’s government bonds through the group’s platform.
Note to editors
Euroclear group is the financial industry’s trusted provider of post trade services. At the core, the group provides settlement, safe-keeping and servicing of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 674.7 trillion in securities transactions in 2015, representing 190.7 million domestic and cross-border transactions. By December 2015, the group held EUR 27.5 trillion in assets for clients.