Euroclear shifts €100bn of Irish securities from UK to EU operations
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Euroclear shifts €100bn of Irish securities from UK to EU operations 19 March 2021 Ireland Reporter: Maddie Saghir
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Euronext has completed the transfer of issuer central securities depository (CSD) services for 50 Irish corporate issuers and listed companies from CREST, operated by Euroclear UK & Ireland, to Euroclear Bank.
The settlement of Irish securities worth around €100 billion traded on Euronext Dublin markets on 15 March took place in Euroclear Bank on 17 March.
Prior to the 12 March, Euroclear UK & Ireland’s CREST system was used for securities issuance and settlement services for Irish securities, but in a post-Brexit environment, the continued use of CREST is not permitted and is not compliant with the Central Securities Depository Regulation (CSDR).
The move was made to ensure compliance with CSDR, and it secures the long term issuer CSD arrangements for Irish securities in a post-Brexit environment.
The migration is set to provide long-term certainty for CSD issuance and settlement arrangements for the Irish market within an EU-based CSD, and will deliver a robust post-trade infrastructure for Irish market participants.
As part of this project, all Irish exchange-traded funds (ETFs) successfully transitioned to an international central securities depository (ICSD) arrangement in advance of the migration for corporate issuers.
Daryl Byrne, CEO of Euronext Dublin, says the migration was a “huge project” that brought together a wide range of market participants who worked together to deliver a successful migration from Euroclear UK & Ireland to Euroclear Bank.
“We now have long-term certainty about the trading and post-trade infrastructure for the Irish market in a post-Brexit world, which ensures that Ireland remains an attractive jurisdiction for listed companies and market participants in the years ahead,” Bryne adds.
Valerie Urbain, CEO of Euroclear Bank, comments: “This successful migration relied on true collaboration with the market and hard work from our team. We look forward to taking this next step with the Irish market by providing a robust and reliable service, building upon a trusted long-standing commitment to Ireland.”
The CSD migration was an industry decision and industry-led project and has been actively supported over the last two and half years by the Central Bank of Ireland and the Department of Finance.
Commenting on the market migration, deputy governor Sharon Donnery, explains: “The Central Bank is responsible for the supervision of regulated entities including the market operator and firms engaged in trading Irish equities.”
Donnery says the successful migration ensures the continued settlement of trades in Irish securities traded on Euronext Dublin.
She adds: "The Central Bank has worked closely with industry participants since this migration project began and the Central Bank welcomes [the] successful migration, which required significant commitment from Euroclear, Euronext and all Irish market participants to ensure the successful delivery of the project.”
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