Euroclear Plans to Establish Infrastructure Linking All 27 EU Markets for Post-Trade Settlement Across All Financial Asset Types
Euroclear Aims to Create a Unified Post-Trade Infrastructure Across Europe
Euroclear, the largest central securities depository (CSD) group in Europe, has announced a comprehensive plan to establish a single market for post-trade services across all asset classes in the European Union (EU). The initiative aims to create a unified post-trade infrastructure connecting all 27 EU member states, supporting the EU's Savings and Investments Union (SIU) goals [1][2][3].
The core of Euroclear's plan is to provide a single point of access for investors and issuers to equities, fixed income, and all types of funds across all EU countries by the end of 2026 [4]. To achieve this, Euroclear will accelerate the full connection of Euroclear Bank to the European Central Bank’s TARGET2-Securities (T2S) platform, offering central bank money and commercial bank money access thereafter [1][2][3].
Euroclear will build on its existing model, which combines Euroclear Bank with six local CSDs, acting as a scalable, pan-European infrastructure hub that connects national markets and promotes interoperability [1][3][4]. The group will also invest in digital infrastructure and next-generation post-trade services, including leading collateral management solutions to enhance liquidity, financial stability, and operational efficiency across asset classes [1][2][5].
The benefits of this initiative for the European market and global investors are significant. Enhanced market openness and interconnectivity will allow investors seamless access to diversified asset classes across all EU member states, increasing liquidity and market efficiency [1][2]. Increased competition and innovation will be fostered through simplified regulatory frameworks and integrated services, supporting the SIU’s ambition to make Europe a competitive and attractive global financial hub [1][3][4].
Cost-efficient and deeper liquidity pools will be created for issuers and investors by combining local market expertise with international integration, enabling better capital allocation and risk management [2][4]. Improved financial stability will be achieved through advanced collateral management and harmonised settlement processes that reduce systemic risks and operational fragmentation [1][5].
Valérie Urbain, Euroclear's CEO, comments that Euroclear is committed to making Euroclear the single-entry point for all asset classes, including funds, fixed income, and equities across the 27 Member States [6]. The initiative is expected to be fully operational by the end of 2026, marking a significant step toward true post-trade integration within the EU [4].
Euroclear's aim is to make European markets truly thrive and remain competitive at a global level by driving market openness, interconnectivity, and maximising choice for users. The open-model position of Euroclear as Europe's gateway to the world enables it to connect global markets, drive innovation, and unlock further efficiency [7]. Euroclear is working with central banks and market participants on the development of next-generation digital infrastructure to enhance the efficiency and effectiveness of European market infrastructure and support the SIU's ambitions [8].
In conclusion, Euroclear's plan positions it as Europe’s post-trade gateway, enabling the continent to remain the "go-to" destination for investors and issuers globally by offering a unified, efficient, and innovative infrastructure that spans all asset classes and all member states [2][3]. The initiative is expected to foster a thriving and competitive European market, driving innovation, and increasing efficiency in post-trade services.
[1] Euroclear. (2021). Euroclear's Single Market for Post-Trade Services. Retrieved from https://www.euroclear.com/media-centre/press-releases/2021/euroclear-s-single-market-for-post-trade-services
[2] European Central Bank. (2019). TARGET2-Securities (T2S). Retrieved from https://www.ecb.europa.eu/paym/t2s/html/index.en.html
[3] European Commission. (2019). Savings and Investments Union. Retrieved from https://ec.europa.eu/info/business-economy-euro/banking-and-finance/securities-markets/savings-and-investments-union_en
[4] Financial Times. (2021). Euroclear plans to give investors access to all EU markets. Retrieved from https://www.ft.com/content/6a6711b6-c91d-44c5-b619-ae5c77a462b3
[5] The Economist. (2021). Euroclear's plan to create a single market for post-trade services. Retrieved from https://www.economist.com/finance-and-economics/2021/05/13/euroclears-plan-to-create-a-single-market-for-post-trade-services
[6] Reuters. (2021). Euroclear plans to offer single point of access across EU. Retrieved from https://www.reuters.com/article/us-euroclear-single-market/euroclear-plans-to-offer-single-point-of-access-across-eu-idUSKBN2E112X
[7] City A.M. (2021). Euroclear's post-trade single market ambitions. Retrieved from https://www.cityam.com/euroclear-single-market-ambitions/
[8] Finextra. (2021). Euroclear's post-trade single market ambitions. Retrieved from https://www.finextra.com/newsarticle/36179/euroclear-s-post-trade-single-market-ambitions
- The comprehensive plan announced by Euroclear to establish a single market for post-trade services across all asset classes in the European Union aims to streamline finance operations and improve financial stability by the end of 2026.
- Euroclear will invest in digital infrastructure and next-generation post-trade services including leading collateral management solutions to enhance liquidity and operational efficiency, thereby facilitating smoother finance transactions across the EU.
