This communication provides the latest update in relation to Euroclear UK & Ireland’s ability to continue to offer Euro settlement on and from 29 March 2021, when the existing arrangements with the ECB allowing Euroclear UK & Ireland access to TARGET2 are scheduled to expire.
Brexit - Euro Settlement - Update
This communication provides the latest update in relation to Euroclear UK & Ireland’s ability to continue to offer Euro settlement on and from 29 March 2021, when the existing arrangements with the ECB allowing Euroclear UK & Ireland access to TARGET2 are scheduled to expire.
As stated in the CREST Reference Manual, Euroclear UK & Ireland’s current arrangements for Euro settlement with the ECB are scheduled to expire on Monday 29 March 2021.
You will be aware (see Operational bulletin 2020-176) that Euroclear UK & Ireland was seeking permission from the ECB to retain access to TARGET2 following the expiry of the existing arrangements.
Euroclear UK & Ireland can now advise that it will not be able to continue to settle in Euros under the current arrangements from 29 March 2021. This means that, unless alternative arrangements can be secured beforehand, the final date for Euro settlement in the CREST system will be Friday, 26 March 2021.
We are investigating alternative arrangements with the aim that Euros can continue as a settlement currency in the CREST system However, at this stage, this cannot be guaranteed. We intend to share more details on the progress of these investigations.
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 via our Brexit overview page. In particular, 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.
If you would like to discuss the above, please contact your Euroclear Relationship Manager who remains available to assist.
