The Euroclear group of national and international central securities depositories (CSDs) performed well in 2007, generally surpassing results from previous years.
Given the unstable markets of 2007, Euroclears strong operationalperformance is particularly noteworthy. Client-focused service improvements and more than 150 million in rebates and tariffreductions delivered in 2007 by several Euroclear entities helped tosustain the momentum of attracting an increasing flow of new and organicclient business to the Euroclear group.
“Notwithstanding the turbulent and heavy-volume trading environment of2007, Euroclear has continued to grow and invest in the future. For thefirst time ever, we surpassed 500 trillion in turnover value and 150million in processed transactions during a single year. At the same time, we have focused on meeting client expectations in terms of service quality, lower fees and efficiency gains in their day-to-day business,” says Pierre Francotte, CEO, Euroclear SA/NV.
Euroclear Banks 2007 turnover surged 30% to EUR 284.5 trillion from 218.8 trillion in 2006. Turnover grew 12% at Euroclear France in 2007,rising to 94.7 trillion in 2007 from 84.3 trillion in 2006. Euroclear UK & Ireland experienced a 22% growth rate in 2007, with turnover expanding to 176.5 trillion from EUR 144.8 trillion in 2006.
Turnover figures for Euroclear Nederland were 5.6 trillion, about 60% higher than the 3.5 trillion recorded in 2006. In 2007, Euroclear Belgiums turnover grew by 58% to 510 billion from 323 billion in 2006.
The value of securities held in custody by Euroclear Bank totalled 9.2 trillion in 2007, a gain of 14% from the 8.1 trillion recorded in 2006. At Euroclear France, the 2007 total value of securities held was 5.3 trillion, a 6% rise from last years 5.0 trillion. Securities held for clients through Euroclear UK & Ireland dropped 8% in 2007 to 3.5 trillion from 3.8 trillion in 2006.
Securities held in Euroclear Nederland decreased 1% to 945 billion in 2007 from 954 billion in 2006. Securities held by Euroclear Belgium also declined in 2007 by 14% to 228 billion from 265 billion in 2006. The declines reported in several CSDs reflected market trends in equity and investment-fund investments during the latter part of 2007.
In 2007, Euroclear Bank settled 40.8 million transactions, an increaseof 20% from the 33.9 million transactions processed in 2006. EuroclearFrance settled 32.3 million transactions in 2007, nearly the same as the32.5 million processed in 2006.
Euroclear UK & Ireland settled 75.0million versus 70.2 million, or 7% more transactions in 2007 than in2006, Euroclear Nederland processed 4.6 million transactions in 2007,21% more than the 3.8 million transactions processed the previous yearand Euroclear Belgium processed 2.8 million transactions in 2007, a 4%increase compared with 2.7 million transactions in 2006.
The 2007 yearly average in triparty collateral management deals outstanding at Euroclear Bank and in daily Delivery-by-Value (DBV) andmoney-market instrument repo instructions at Euroclear UK & Ireland bothincreased 19% compared with the average in 2006. Reflecting market trends in the second half of 2007, triparty collateral management deals outstanding managed by Euroclear Bank at year-end 2007 rose 6% to adaily average of 328.1 billion compared with 308.7 billion atthe end of 2006.
Euroclear Bank reached a new record of 350 billion in daily outstanding during 2007. Euroclear UK & Ireland processed the equivalent of 266.9 billion in daily Delivery-by-Value (DBV) and money-market instrument repo instructions in 2007, 16% more than the 229.2 billion in 2006.
The number of fund transactions processed at Euroclear reached a record8.5 million in 2007. The average number of FundSettle transactions grew24% in 2007 compared with 2006.
FundSettle now covers more than 36,000 offshore and domestic funds from21 markets, including clients in-house funds, having added more than3,000 funds in 2007. The number of active FundSettle accounts increasedby 22% in 2007, while total client holdings in funds increased by 20%during the year.
In December 2007, Euroclear France processed over 10,000 instructionsper month on its investment fund order-routing platform. Launched in2006, the service has attracted centralising agents accounting for 80%and account holders representing more than 45% of investment-fund orderflows in France.
EMXCo became part of the Euroclear group on 1 January 2007. The EMX Message System routed over 19.2 million messages in 2007, equating to over65 billion in investment-fund flows, growing 44% and 97%, respectively,from the 13.3 million messages and 33 billion in fund flows in 2006.