Euroclear

Euroclear’s main activity is the provision of settlement and custody services for financial securities on an international scale. Euroclear acts as a central securities depository (CSD) and an international central securities depository (ICSD), facilitating the clearing, settlement, and custody of securities for financial institutions such as banks, asset managers, insurance companies, and issuing companies.

Euroclear offers a range of products and services, including:

• Settlement of securities (stocks, bonds, funds, money market instruments, etc.)
• Custody and asset management, including the management of rights attached to securities (payment of dividends, interest, corporate actions, etc.)
• Collateral management and securities financing services
• Regulatory reporting and compliance solutions

Euroclear’s target market consists mainly of international financial institutions, financial intermediaries, central banks, brokers, asset managers, and securities issuers operating in global financial markets.

Euroclear is an international company specializing in settlement and custody services for financial securities. Founded in 1968 in Brussels, Euroclear was initially created to facilitate the settlement of transactions on eurobonds, a rapidly growing market at the time. Its main objective was to reduce the risks and costs associated with the clearing and settlement of international securities.

Over the decades, Euroclear has experienced several key stages in its development:

• Creation (1968): Euroclear is founded by J.P. Morgan in Brussels to meet the growing needs of the eurobond market.
• Independence (2000): Euroclear becomes an independent entity, separating from J.P. Morgan to strengthen its neutrality and governance.
• Expansion through acquisitions (2000s): Euroclear acquires several European central securities depositories (CSDs), including Sicovam (France), Necigef (Netherlands), CIK (Belgium), and Monte Titoli (Italy), thus expanding its presence in Europe.
• Development of products and services: Euroclear broadens its offering by providing settlement, custody, corporate actions management, investment fund, and regulatory reporting services.
• Strategic partnerships: The company forms partnerships with other market infrastructures and financial institutions to strengthen the interoperability and efficiency of global financial markets.
• Digital transformation and innovation: Euroclear invests in the digitization of its services, process automation, and the integration of new technologies to meet the evolving needs of its clients.
• Key role in international finance: Today, Euroclear is one of the largest global depositories, safeguarding trillions of euros in assets and settling millions of transactions each year.

Euroclear continues to evolve by adapting to regulatory, technological, and market changes, while playing a central role in the stability and efficiency of international financial markets.

Since its creation, Euroclear has been primarily financed by its founding members, major financial institutions, and by its own operational revenues from settlement and asset custody services. Euroclear has not conducted traditional public fundraising rounds like startups, but has over time welcomed new institutional shareholders, including banks and market infrastructures. In 2000, Euroclear acquired Banque Bruxelles Lambert Securities Services, and in 2002, merged with CRESTCo, strengthening its capital structure. The main investors are international banks and financial institutions, but there have been no public fundraising rounds with specific dates as in venture capital. The financing model is based on the ongoing participation and investment of its institutional members and clients.