Intercontinental Exchange (ICE) has acquired a 4.7% stake in Euroclear, as it continues to shore up its position in continental Europe’s market infrastructure.
ICE, which owns the New York Stock Exchange (NYSE), bought the stake from Royal Bank of Scotland (RBS) for €275 million.
“Euroclear’s infrastructure plays an increasingly important role as technology, collateral, risk management and regulation continue to drive an emphasis on post-trade services,” said Jeff Sprecher, chairman and CEO, ICE.
“This transaction demonstrates our continued focus on expanding our investments in mission critical clearing and risk management assets.”
ICE anticipates having at least one representative on Euroclear’s board of directors, joining industry heavyweights including Deutsche Bank’s Satvinder Singh and HSBC’s Cian Burke on the board.
Euroclear settles all securities traded on pan-European exchange Euronext, which ICE offloaded as part of its acquisiton of NYSE group in 2014.
ICE also represents the first exchange operator to acquire a stake in the Belgium-based post-trade infrastructure, as it looks to bolster its position in the EU. It already operates a clearing house based in Amsterdam.
Meanwhile analysts have tipped Euroclear to be a prime target for the London Stock Exchange Group (LSEG), with UBS describing it as a “hidden jewel”. The LSE already operates a central securities depository (CSD) in Italy but has yet to go live with its Luxembourg-based globeSettle.