LSEG Acquires Stake In Euroclear
London Stock Exchange Group plc announces it will acquire an aggregate 4.92% stake in Euroclear’s share capital for €278.5 million (£241.9 million).
— Euroclear (@EuroclearGroup) January 30, 2019
Euroclear is a leading financial market infrastructure company, providing settlement, custody and collateral management services across Europe with €28.2tn2 in assets under custody.
LSEG’s minority investment is expected to strengthen LSEG and Euroclear’s existing operational and commercial relationship and provide further opportunities for the companies to deliver benefits to their customers through commercial collaboration and product development. Following LSEG’s minority investment in Euroclear, LSEG and Euroclear anticipate that a representative of LSEG will join the Board of Euroclear Holding SA/NV.
The transaction will be funded from existing cash and debt facilities and it is expected that the Group’s adjusted net debt to EBITDA will remain within its target range of 1-2 times following completion. The transaction is expected to be earnings accretive.
David Schwimmer, CEO of LSEG, commented:
“We are delighted to become a shareholder of Euroclear, with which we have a long-standing operational and commercial relationship. Both LSEG and Euroclear share the same open access philosophy and a customer partnership approach which is central to our businesses. We look forward to working with Euroclear to drive continued innovation and efficiencies for the benefit of our customers and the wider market.”
— Virginie O'Shea (@virginieoshea) January 30, 2019
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.
Traders on EQONEX will be able to use US dollars, USD Coin and Bitcoin as margin for derivatives trading.
DTCC’s Margin Transit Utility simplifies the transfer of collateral.
Smaller entities come into scope in phase five of the uncleared margin regulations on September 1.