Euroclear to restructure on Brexit-related risks

While reiterating its commitment to serve a post-Brexit UK, Euroclear announced a plans for a “minimum business impact” on Euroclear from Brexit, according to an Investor Day presentation.

Corporate restructuring was one of the solutions identified to overcome areas of Brexit‐related risk. The presentation noted that it is “strategically important to have top holding company inside EU”. As such, Euroclear intends to propose a new group structure, with the parent holding company in Belgium.

In addition, Euroclear plans to establish a new Irish CSD using the CREST system. It is a “sustainable solution to continue supporting (the) Irish securities market”, according to the presentation, and subject to regulatory approvals.

Euroclear also discussed collateral in the context of expanding growth initiatives. Highlights from 2017 were: the continued support of OTC derivatives clients in transition to a new regulatory regime; the launch of an inventory management service for Global Collateral Ltd, and moving to a client onboarding stage; and a bump of 7% of collateral outstanding in 2017 reaching €1.2 trillion.

Read the full presentation

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