Euroclear to launch multi-exchange book-entry service settlement service

Euroclear to launch multi-exchange book-entry service settlement service

European securities depository Euroclear Bank is introducing a multi-exchange straight-through book-entry service for cross border transactions, allowing its clients to settle equity transactions on three Euronext markets and the London Stock Exchange in a single location.

Euroclear says the service, which is due to be launched on 6 September, will provide a new choice of settlement location for Euronext Amsterdam trades and Dutch shares traded on the London Stock Exchange that are cleared by LCH.Clearnet.

The service for Euronext Amsterdam trades will complement existing domestic settlement services offered by Euroclear Nederland for Dutch Euronext members.

Ignace Combes, deputy CEO, Euroclear Bank, says: "The liberty of working independently with Europe's major stock exchanges to deliver efficient and low-cost cross-border settlement alternatives is providing the market with more choice and benefits than ever before.

"As more market participants use Euroclear Bank as their single platform to settle cross-border equity and fixed-income trades, we will continue to seek opportunities to lower our tariff for these services and to develop additional services."

Euroclear has also announced a 20% reduction in settlement fees for UK equity transactions and a 50% cut in safekeeping fees for French equities.

This follows a 50% average settlement-fee reduction that went into effect for off-exchange Belgian and French equity transactions in April 2004 and that will come into effect for off-exchange Dutch equity trades in October 2004.

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