Settlement

Introduction

You expect smooth settlement of all your trades, however they are made – via stock exchange, Multi-lateral Trading Facility (MTF), or over-the-counter (OTC); bilaterally with your counterparty.

As a world leader in settlement automation, we can settle almost every domestic and international securities transaction, helping to drive down risk with:

  • Straight-Through Processing (STP) rates of up to, and above, 99% 
  • Delivery-Versus-Payment (DVP) on all securities settlement services

Our settlement services let you:

  • centralise your assets and access to liquidity
  • optimise the use of your assets
  • benefit from a full range of value-added services

International settlement against payment in commercial bank money

As an ICSD, Euroclear Bank settles your transactions:

  • in international securities and the domestic securities of 48 markets
  • against payment in 51 settlement currencies, or free of payment 

You also get access to our value-added services designed to boost efficiency and avoid settlement fails with, for example, our automatic securities borrowing programme.

Domestic and international securities settlement against payment in central bank money

Our group connects six European CSDs, making us the largest group of CSDs, offering you the highest levels of safety and both domestic and international reach.

  • Euroclear Belgium, Euroclear France, Euroclear Nederland – or ESES – offer settlement services for T2S-securities. We also offer settlement services for  transactions in a range of international and non-T2S securities, via Euroclear Bank.
  • Euroclear Finland – the Finnish CSD – will offer a T2S access as of September 2023. We provide settlement services for transactions in Finnish securities and operate a cross-border link with Euroclear Sweden for the transfer of multi-deposited securities.
  • Euroclear Sweden – the Swedish CSD – offers settlement services for transactions in Swedish securities. Our cross-border link with Euroclear Finland enables the transfer of multi-deposited securities.
  • Euroclear UK & International provides settlement and related services for UK and Irish securities via our CREST system, and for a range of international securities via our links to various ICSDs and CSDs.
More than just settlement

Round-the-globe settlement comes with specific challenges such as time zone differences, which may complicate, for example, onward securities deliveries. We offer various services to drive down the risk of settlement failure with, for example, an automated securities borrowing programme.

Also, you can:

  • find new revenue opportunities: make your assets work harder with our securities lending, liquidity pooling, asset optimisation and triparty collateral management services
  • improve how you service your stakeholders: our full asset servicing portfolio including corporate actions, tax management, proxy voting and more, makes your life easy

We are experts in both international and domestic market settlement. You can count on our best-of-class support for all your transactions, across time zones, around the globe.

As a market participant, you expect your securities trades to be settled safely, efficiently and at low cost. That’s what we offer as the Central Securities Depository (CSD) for the UK markets.

We give you control of your transactions throughout the transaction life-cycle.

You get access to:

  • settlement against payment in pound sterling, euro and US dollar, or free of payment 
  • settlement of exchange-traded and Over-The-Counter (OTC) transactions
  • cross-border settlement – usually free of payment – via our links with International CSDs

The CREST system

Our CREST system removes risk from your activities and the market with:

  • high levels of efficiency
  • straight-Through Processing (STP) Delivery Versus Payment (DVP) settlement with simultaneous transfer of securities to the buyer and cash payment to the seller – CREST is a DVP Model 1 settlement system
  • settlement against payment in central bank money

Connecting the UK and international capital markets

  • Professionals – We connect issuers and their agents with capital market participants, including local and international brokers, banks, custodians and investment houses. All these parties hold a securities account in the CREST system ensuring efficient transaction settlement. 
  • Retail investors / private individuals – You can open an account in their name and have an indirect CREST connection via their retail bank or broker.

Benefit from our market proximity and expertise

CREST is designed specifically for the UK domestic markets, settling transactions in dematerialised or certificated securities:

  • securities held directly on CREST accounts are dematerialised
  • securities held outside CREST are represented by certificates issued by the issuer’s registrar

Maintain your competitive advantage

  • Collateral management via our Delivery By Value (DBV) service
  • Credit facilities to boost your activity and settlement efficiency via our commercial payment bank contacts

 

 
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