Euroclear
Euroclear is one of two principal securities clearing houses in the Eurozone. Euroclear specializes in verifying information supplied by brokers involved in a securities transaction and the settlement of securities transacted on European exchanges.The other principal European clearing house is Clearstream, formerly the Centrale de Livraison de Valeurs Mobilières (CEDEL).
Euroclear
Definition
Euroclear is one of the two main securities settlement houses in the Eurozone, specializing in verifying information provided by brokers in securities transactions and settling securities traded on European exchanges. The other major European settlement house is Clearstream.
Origin
Euroclear was established in 1968, initially to support the development of the European bond market. Over time, it expanded its services to cover a wider range of securities and markets.
Categories and Features
Euroclear's services are mainly divided into two categories: securities settlement services and asset management services. Securities settlement services include the verification and settlement of transactions, ensuring the security and accuracy of trades. Asset management services include the custody and management of clients' securities assets, providing secure storage and management services.
Comparison with Similar Concepts
The other major settlement house similar to Euroclear is Clearstream. Clearstream also provides securities settlement and asset management services, but its history and service scope differ. Clearstream, formerly known as Centrale de Livraison de Valeurs Mobilières (CEDEL), was established in 1970 and primarily serves international markets.
Specific Cases
Case 1: An investment firm purchases a batch of German government bonds on a European exchange. After the transaction is completed, Euroclear verifies the transaction information and transfers the bonds to the investment firm's account on the settlement date, ensuring the smooth completion of the trade.
Case 2: A multinational corporation issues bonds in multiple European countries. Euroclear provides custody services, managing the storage and transfer of these bonds, ensuring the corporation can efficiently manage its international debt.
Common Questions
Question 1: Are Euroclear's settlement services secure?
Answer: Euroclear employs advanced technology and stringent security measures to ensure the security and accuracy of transactions.
Question 2: How to choose between Euroclear and Clearstream?
Answer: The choice depends on specific needs and markets. Euroclear is more suitable for transactions within the Eurozone, while Clearstream offers broader services in international markets.
