Brussels, 14 November 2019 – Euroclear Bank, the Brussels-based international central securities depository (ICSD), today announced its intention to offer clients the choice between Euro settlement in both commercial bank and central bank money.

The option being assessed is to connect to the European Central Bank’s Target2Securities (T2S) ecosystem, the European settlement platform which offers centralised settlement in central bank money across all European securities markets. Such a move would assist financial institutions in managing their risk, increasing efficiency and liquidity, and help to foster more attractive European capital markets.

As an integrated settlement model for Europe, T2S has aimed to reduce European fragmentation and make securities settlement more efficient. Euroclear’s ESES CSDs (Belgium, France, Nederland) joined T2S in 2016.

Euroclear Bank, by providing access to both central and commercial bank money, would advance this objective by creating a single pool of collateral liquidity across multiple currencies and market jurisdictions. The ability to optimise liquidity in a cost efficient manner – whilst also benefiting from exceptional service levels in collateral management, asset servicing and asset protection – has become an increasing market requirement.

This market initiative is aligned to the European Commission’s vision for a Capital Market Union that seeks to mobilise capital and fostering new financing opportunities for economic growth in Europe.

Lieve Mostrey, Euroclear Group CEO commented: “Providing direct access to central bank money through Euroclear Bank is aligned to the EU's long standing policy objective of developing a more liquid and efficient financial market infrastructure environment. Our initiative will benefit investors and issuers alike, and contribute to more robust capital markets.”


Note to editors

Euroclear group is the financial industry’s trusted provider of post trade services. At the core, the group provides settlement and custody 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 791 trillion in securities transactions in 2018, representing 230 million domestic and cross-border transactions and held an average of EUR 28.8 trillion in assets for clients.

For more information about Euroclear, please visit www.euroclear.com

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"Our initiative will benefit investors and issuers alike, and contribute to more robust capital markets."

Lieve Mostrey, Chief Executive Director, Euroclear


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