Source: Euroclear
Euroclear Nederland, the central securities depository (CSD) of the Netherlands, has received approval from the Dutch Ministry of Finance to extend its admission criteria to Dutch and other investment firms based in the European Union. Previously, these firms were ineligible to become direct members of Euroclear Nederland.
Effective 1 January 2005, investment firms that become members will be able to settle their transactions and hold their positions directly with Euroclear Nederland. This includes over-the-counter transactions, as well as transactions executed on Euronext Amsterdam and the ‘Dutch Trading Service' of the London Stock Exchange.
This development is significant in that it brings the Dutch CSD in line with other Euronext markets (Belgium and France) by allowing investment firms to become direct members of the local CSD. This new development will enable investment firms located in the Netherlands and elsewhere in Europe to choose Euroclear Nederland as their single point of entry for the settlement of trades involving Euronext-zone securities (equities or fixed-income) once the single settlement platform for Euronext-zone securities is launched by Euroclear in 2007. Euronext Nederland also offers custody services for Dutch securities.
Peter Sneyers, General Manager of Euroclear Nederland, said: "We believe this admission criteria extension will increase efficiency and reduce costs for investment firms trading in Dutch securities. It will also widen the scope of counterparties with which our members can settle transactions in a single account. Moreover, the new admission criteria at Euroclear Nederland will enable Euroclear to make progress on its plans to harmonise, to a reasonable common denominator, the admission criteria of the three Euronext-market CSDs."
The decision to admit investment firms to Euroclear Nederland is also in accordance with the CPSS/IOSCO (Committee on Payment and Settlement Systems/International Organization for Securities Commissions) and ESCBCESR (European System of Central Banks/Committee of European Securities Regulators) recommendations, and the EU MiFiD (Markets in Financial Instruments Directive), for objective CSD participation criteria that permit open access to settlement systems.
Euroclear Nederland's membership rules were last amended in May 2000 to allow for the admission of EU credit institutions that had been granted a European passport under European Directive 77/780 EU.