03.18.2021

Irish Securities Settlement Moves To Euroclear Bank

Euronext and Euroclear Bank announced the successful migration of issuer CSD services for 50 Irish corporate issuers and listed companies from CREST (operated by Euroclear UK & Ireland) to Euroclear Bank (an International Central Securities Depository), effective 15 March 2021. The settlement of Irish securities traded on Euronext Dublin markets on 15 March 2021 took place successfully in Euroclear Bank on 17 March 2021.

Up until 12 March 2021, Euroclear UK & Ireland’s CREST system has been used for securities issuance and settlement services for Irish securities. However, in a post-Brexit environment the continued use of CREST is not permitted and is not compliant with EU Central Securities Depository Regulation (“CSDR”). Under CSDR, Article 25, securities governed by the law of a Member State must be issued into an EU27-authorised CSD, or a CSD in a third country that has been granted equivalence allowing the CSD to provide services into a Member State. Therefore this change has been implemented to ensure compliance with CSDR, and it secures the long term issuer CSD arrangements for Irish securities in a post-Brexit environment.

The migration satisfies this legislative requirement, provides long-term certainty regarding CSD issuance and settlement arrangements for the Irish market within an EU-based CSD, and delivers a robust post-trade infrastructure for Irish market participants. As part of this project, all Irish ETFs successfully transitioned to an international ICSD arrangement in advance of the migration for corporate issuers.

Daryl Byrne, CEO of Euronext Dublin, said: “The wholesale migration of settlement of securities from one CSD to another is unprecedented. This was a huge project that brought together a wide range of market participants who worked tirelessly to deliver a successful migration from EUI 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.”

Valerie Urbain, CEO of Euroclear Bank, commented:  “We are extremely pleased to be able to continue the excellent work done by Euroclear UK & Ireland as issuer CSD, which has serviced the Irish securities industry for over 20 years.  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.”

Source: Euroclear

Related articles

  1. A structured home-office work mix can optimize a trading desk's efficiency, Fidelity's Tom Stevenson writes.

  2. Staff will be working from a mix of home and the office.

  3. Brexit Muddles Future of UK-EU Linkage

    ISDA urges the EU to grant permanent equivalence to UK CCPs.

  4. Margins Raised Ahead of Brexit Vote

    Formal steps need to be undertaken on both sides before the MoU can be signed

  5. Commissioner McGuinness says UK cannot have equivalence with wide regulatory divergence.