Media Release 21-PR-4 Record results in for the Euroclear group For further information, please contact: Denis J. Peters +32 (0)2 224 2618 peters_denis@euroclear.com Conor Leeson +32 (0)2 224 2085 leeson_conor@euroclear.com Bruno Douvry + 33 (0)1 55 34 56 94 bruno.douvry@euroclearfrance.com Brussels, 26 February 21 The year-end results of the Euroclear group confirm its position as the world s largest settlement system for domestically and internationally traded bonds and equities. The Euroclear group includes Euroclear Bank, the CSD service for Irish government bonds and Euroclear France (formerly Sicovam SA). To ensure continued transparency, we provide data on aggregate measures of performance for the Euroclear group, as well as separately for Euroclear Bank and Euroclear France. Euroclear Bank s share of cross-border transaction settlement is estimated to have exceeded 80% in compared with 77% at the end of. In addition, Euroclear s estimated market share for the settlement of German bonds both domestic and cross border also increased in to more than 60% compared with 59% in. Statistical highlights Turnover, or the value of securities transactions settled, increased in by EUR 12,522 billion to EUR 95,457 billion, an increase of 15% from the proforma Euroclear group turnover for of EUR 82,935 billion. The value of securities held in custody by the Euroclear group at yearend was EUR 7,424 billion, 18% greater than the EUR 6,290 billion at year-end. The number of securities accepted for settlement and related services at the end of expanded to 182,602, an increase of 21% from the level one year ago (securities accepted by both Euroclear France and Euroclear Bank were counted only once). The number of pre-netted transactions settled in the Euroclear group was 145 million in, an increase of 57% from the level of 92 million. The number of netted transactions was 52 million in versus 36 million in, a 44% increase. Euroclear Bank S.A./N.V. 1 Boulevard du Roi Albert II, B-1210 Brussels, Belgium Euroclear France S.A. 115, rue Réaumur, F-75081 Paris, Cedex 02, France Euroclear is the marketing name for the Euroclear System, Euroclear Clearance System plc, Euroclear Bank and their affiliates www.euroclear.com 21 Euroclear Bank S.A./N.V.
Applicable only to Euroclear Bank, average daily triparty outstanding rose to EUR 47 billion in, an increase of 38% from the EUR 34 billion recorded for, with daily peaks in excess of EUR 60 billion. In, Euroclear France managed more than 6 requests, an increase of 15% from the previous year, for shareholder identity information through its TPI service (Titre au Porteur Identifiable). More than 2 million BRNs (Bordereau de Références Nominatives), which is the electronic transmission of information between issuers and custodians for registered shares, were processed in, an increase of 79% from levels. The growth in for the Euroclear group reflects the successful processing of settlement instructions worth more than EUR 360 billion on average per day. Performance analysis The world s most actively trading financial institutions continued to direct more of their settlement and custody business for bonds and equities to the Euroclear group. Euro-denominated securities accounted for more than 80% of the Euroclear group s total turnover and domestic bonds accounted for over 66% of Euroclear s settlement activity. Equities and equity-linked securities represented EUR 8.9 trillion. Clearnet, the netting facility of EURONEXT, was a key factor in reducing transaction costs for clients by netting more than two-thirds of all trades prior to settlement in Euroclear France. The EUR 1,134 billion increase in the value of securities held in custody for clients was the result of new business directed to the Euroclear group, including a net gain from competing CSDs and ICSDs. Clients set a new record in their daily borrowings of securities through Euroclear Bank, a service offered in order to avoid settlement fails. In, the average daily value of securities loans outstanding reached a record EUR 8.7 billion, compared with EUR 6.4 billion in.
Clients also increased their emphasis on risk reduction and on optimising use of the multi-security pool of collateral held in Euroclear Bank in order to secure exposures arising from triparty repo, credit derivative, secured loan and securities lending transactions. Average daily triparty outstanding climbed to a record EUR 47 billion in, reinforcing Euroclear Bank s leadership in pan-european collateral management services. In addition, AutoSelect, the automatic securities selection and substitution module, was used in 82% of all triparty transactions in Euroclear Bank. Commenting on the results, Pierre Francotte, Chief Executive Officer, Euroclear Bank, and President, Euroclear France, says: Our performance in has exceeded expectations for both Euroclear Bank and Euroclear France. These results, and in particular our market share gains, provide tangible confirmation that we are pursuing the right course by continuing to roll out new service enhancements and fee reductions at a steady pace. At the same time, we are working pragmatically with other partners to provide the market with a true pan-european solution for both bonds and equities. This is the best way to deliver the long-term and immediate benefits the market is demanding. The Euroclear group is the world s largest settlement system for domestic and international securities transactions, covering both bonds and equities. Market owned and market governed, Euroclear provides securities services to major financial institutions located in more than 80 countries. Euroclear also acts as the central securities depository for all French securities and Irish government bonds. Euroclear Bank is rated AA+ by S&P and Fitch.
Statistical highlights Euroclear Bank Euroclear France The Euroclear group Turnover (EUR billions) 57,948 43,643 33% 37,509 39,292-5% (a) 95,457 82,935 15% (value of transactions settled, before netting) Total number of transactions (millions) - Before netting 11 8 37% 134 84 60% (a) 145 92 58% - After netting 11 8 37% 41 28 46% (a) 52 36 44% Custody (EUR billions) (value of securities 3,903 3,029 29% 3,521 3,261 8% (a) 7,424 6,290 18% held in custody) Average daily triparty 47 34 38% 47 34 38% oustanding (EUR billions) Number of securities 166,638 135,661 23% 22,722 20,7 9% 182,602 150,2 21% accepted (actual number) (a) Euroclear France experienced a surge in the value of French equity transactions settled in, which did not compensate for the slower market activity in French bonds. In general, the average value of bond transactions were substantially larger than equity transactions, which explains the dip in turnover. = not applicable
Euroclear group operating highlights 19- Turnover (EUR trillions) Value of securities held (EUR billions) 1 95.5 80 7424 75 50 25 47.1 19.8 27.3 56.5 22.8 33.7 72.4 32.3 40.1 82.9 39.3 43.6 58.0 60 40 3590 1888 1702 4150 2089 2061 4744 2502 2242 6290 3261 3029 3521 3903 0 0 Number of transactions (millions) (Before netting) Average daily triparty outstanding (EUR billions - Euroclear Bank only) 150.0 145 50.0 47.3 112.5 92 34.2 75.0 46 40 61 54 71 63 84 134 25.0 12.5 18.3 21.5 25.8 0.0 6 7 8 8 11 0.0 Euroclear group turnover Other(*) 14% Domestic bonds 66% USD 11% Other 6% Eurobonds 10% Euro 83% Equities 10% Instrument mix (*) Includes floating rate notes, short- and medium-term notes. Denomination currency mix Euroclear France Euroclear Bank