Brussels and London, 20 November 2008 – Euroclear and the
International Capital Market Association (ICMA) signed an agreement
whereby Euroclear SA/NV will acquire 100% of Xtrakter Ltd, the ICMA
subsidiary, for an undisclosed cash amount. Xtrakter owns TRAX, a
trade matching and regulatory reporting system that also provides
market and reference data.
Pending receipt of regulatory approvals, Xtrakter will become a wholly
owned subsidiary of Euroclear SA/NV and a sister company to the
Euroclear group’s international and national central securities
depositories, and EMXCo. The Xtrakter business will complement the OTC
trade matching and routing service (ETCMS) offered by Euroclear Bank
since 2000.
Completely automating the flow of trade information from trade
matching through to settlement is a key client benefit deriving from
this transaction. By the end of 2009, trade data already input into
the TRAX system will be processed straight through to settlement at
Euroclear, thereby eliminating trade matching duplication, reducing
settlement fails, costs and risks.
Moreover, the ability to help clients meet their mandatory regulatory
reporting of transaction information will be enhanced through this
business combination, while strengthening Euroclear/Xtrakter’s appeal
to the market as a provider of these services. The competent
authorities in key markets such as Belgium, France, the Netherlands
and the United Kingdom have awarded MiFID-compliant Approved Reporting
Mechanism (ARM) status to one or both entities.
Ignace R. Combes, Deputy Chief Executive Officer of Euroclear SA/NV,
said: “Combining the pre-settlement services and expertise of Xtrakter
with the highly efficient transaction-settlement prowess of Euroclear
will deliver a competitively priced, full STP service from
trade-matching to settlement. By looking upstream to trade matching,
we are continuing to increase efficiency and lower back-office costs
for clients by streamlining processes and eliminating fragmentation.”
Kevin Milne, Chief Executive Officer of Xtrakter Ltd, said: “Under our
new ownership, we will maintain our strategy of delivering ongoing
improved client services across all our business lines. Being part of
Euroclear will enable us to drive our matching, reporting and
information services products into new areas, thereby helping to
support our customers reduce further their operational cost of
trading.”
René Karsenti, Executive President of ICMA, said: “When the
Association launched TRAX 20 years ago, it was in response to the
clear industry need for a market-wide trade-matching system. The
acquisition of Xtrakter by Euroclear will allow Xtrakter to develop
and enhance its market-led services in the context of the many
advantages and synergies available from operating as part of a group
providing world-class settlement and related services.”
More information
Commercial Operations
Tel: +44(0)20 7535 5656
CommercialOperations@xtrakter.com
Euroclear:
Denis J. Peters
+32 (0)2 326 2618
denis.peters@euroclear.com
Martin Gregson
+32 (0)2 326 4186
martin.gregson@euroclear.com
Stéphanie Heng
+32 (0)2 326 1151
stephanie.heng@euroclear.com
ICMA:
Allan Malvar
DDI +44 207 517 3236
Mobile +44 7738 696 451
allan.malvar@icmagroup.org
Margaret Wilkinson
DDI: +44 20 7517 3237
Mobile: +44 7931 100 499
margaret.wilkinson@icmagroup.org
CommercialOperations@xtrakter.com
