MARKET INFRASTRUCTURE

ICE ups stake in Euroclear to 10%

The increase comes less than six months after the global exchange group purchased a 4.7% stake in Euroclear from RBS for €275 million.

By Joe Parsons joe.parsons@globalcustodian.com February 06, 2018 2:00 PM GMT

Intercontinental Exchange (ICE) has reportedly increased its stake in Euroclear to 10%, as it looks to strengthen its exposure to Europe’s market infrastructure.

The increase comes less than six months after the global exchange group purchased a 4.7% stake in the Belgium-based central securities depository (CSD) from Royal Bank of Scotland for €275 million.

The Financial Times first reported the purchase. A spokesperson for ICE and Euroclear declined to comment.

At the time of the acquisition in October, Jeff Sprecher, CEO and chairman of ICE, explained how gaining exposure to Europe’s custody and collateral management market would be a key target for its post-Brexit strategy.

“At a moment in time when we think there's a lot of change going on in -- both in Europe and with respect to custody in terms of bank capital requirements and other pressures that are being put on the industry for cost,” said Sprecher at the time.

He added at the time that ICE had begun engaging with Euroclear management to see where both groups can work beneficially together.