Euroclear's Innovative Strategy for Enhancing EU Markets
Euroclear's Ambitious Plan to Transform EU Post-Trade Services
Today, Euroclear presents an exciting initiative aimed at reshaping the landscape of post-trade services throughout Europe. This groundbreaking plan is designed to create a unified market catering to all types of financial assets. The intention is to bolster the efficiency of European market infrastructure while aligning with the aspirations of the Savings and Investments Union (SIU) to secure Europe’s status as a premier destination for global investors and issuers.
Key Objectives of Euroclear's Post-Trade Infrastructure
With its bold vision, Euroclear seeks to introduce numerous benefits that will revolutionize the European financial landscape. Essential to this initiative is the promise of seamless connectivity across the single market, which is pivotal for nurturing healthy competition among market players, promoting financial stability, and spurring innovation alongside swift technology adoption. This plan leverages Euroclear's extensive experience, scale, and global networks, capitalizing on the strengths of its leading international Central Securities Depository (Euroclear Bank) and six local CSDs across Europe to position itself as Europe's vital link to global markets.
Creating a Unified Access Platform
At the heart of this vision is Euroclear's commitment to providing a singular access point to all 27 EU Member States across various financial asset classes, which encompasses equities, fixed income, and diverse fund types. To achieve this, Euroclear plans to:
- Facilitate access to all EU Central Securities Depositories (CSDs) through both central bank and commercial bank money, with a focus on fully integrating Euroclear Bank into the European Central Bank's Target2-Securities (T2S) framework.
- Enhance synergies among Euroclear’s local CSDs and Euroclear Bank to deliver more efficient and united services.
Investing in the Future of European Markets
Through this action plan, Euroclear is dedicated to investing in the infrastructure and services that will contribute to a more efficient single market:
- Developing a pan-European infrastructure designed for issuers seeking access to an expansive investor ecosystem, ample liquidity, and cost-efficient services.
- Augmenting the post-trade framework to facilitate both retail and institutional investments across equities, mutual funds, and alternative fund products.
- Enhancing liquidity and market stability through advanced collateral management solutions.
- Collaborating with central banks and market participants to further develop next-generation digital infrastructure.
Looking Ahead: Implementation of the Plan
To realize this comprehensive plan, Euroclear's immediate focus will be on completing its full commercial bank money access across all 27 EU Member States by a set target year. Simultaneously, efforts to propagate Euroclear Bank’s connection to the T2S platform will be expeditiously pursued to ensure access to Central Bank Money.
Leadership Insights on Market Enhancement
Valérie Urbain, the CEO of Euroclear, shared her insights during an address about the company’s visionary strategy: "Fostering market openness, ensuring interconnectivity, and maximizing user choice are essential to cultivating more liquid and effective capital markets in Europe. Under these conditions, European markets can truly flourish and maintain competitiveness on a global stage. At Euroclear, we are dedicated to establishing a singular entry point for all asset types—a mission that encompasses funds, fixed income securities, and equities across the entire European spectrum."
Euroclear’s Commitment to Financial Growth
Throughout its history, Euroclear has played a vital role in supporting the financing of the European economy while assisting in the integration of European markets. As the largest Central Securities Depository group in Europe, Euroclear currently holds over half of all issued securities within the EU and accounts for more than 60% of the EU's settlement turnover. This significant influence highlights the ongoing commitment of Euroclear to drive efficiency within European financial markets.
Frequently Asked Questions
What is Euroclear's new plan about?
Euroclear's new initiative aims to establish a unified post-trade service platform connecting all 27 EU markets across different financial assets, enhancing efficiency and effectiveness.
Who is leading Euroclear's initiative?
The initiative is led by Euroclear's CEO, Valérie Urbain, who emphasizes market openness and connectivity for thriving capital markets.
What are the expected benefits of this plan?
The plan aims for seamless connectivity, improved market competition, financial stability, and the adoption of innovative technologies.
How will Euroclear achieve its goals?
Euroclear plans to integrate Euroclear Bank with the European Central Bank's Target2-Securities platform and enhance its local CSD operations.
What impact does Euroclear have on the European economy?
Euroclear significantly influences the European economy by holding over 50% of issued EU securities and representing more than 60% of EU settlement turnover.
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