Irish Securities Settlement Moves To Euroclear Bank

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. Brexit Vote Could Affect Emerging Market Flows

    Review of trading desks found that incoming banks did not yet retain full control of their balance sheets.

  2. UK Launches Asset Management Review

    UK has a greater market share than pre-Brexit for on-venue execution of GBP interest rate swaps.

  3. AFME Warns on ‘Brexit’

    Recognition has been temporarily extended until 30 June 2025.

  4. The trade repository has been providing UK services since the first business day after Brexit on 4 Jan 2021.

  5. Brexit Muddles Future of UK-EU Linkage

    European firms could operate temporarily in the UK after Brexit while seeking full authorisation.