Euroclear and the International Capital Market Association (ICMA) signed an agreement whereby Euroclear SA/NV will acquire 100% of Xtrakter Ltd, the ICMA subsidiary, for an undisclosed cash amount. Xtrakter owns TRAX, a trade matching and regulatory reporting system that also provides market and reference data.
Pending receipt of regulatory approvals, Xtrakter will become a wholly owned subsidiary of Euroclear SA/NV and a sister company to the Euroclear group’s international and national central securities depositories, and EMXCo. The Xtrakter business will complement the OTC trade matching and routing service (ETCMS) offered by Euroclear Bank since 2000.
The benefit of this transaction consists in automating the flow of trade information from trade matching through to settlement. By the end of 2009, trade data already input into the TRAX system will be processed straight through to settlement at Euroclear, thereby eliminating trade matching duplication, reducing settlement fails, costs and risks.
This business combination will enhance mandatory regulatory reporting of transaction information.
“Under our new ownership, we will maintain our strategy of delivering ongoing improved client services across all our business lines,” says Kevin Milne, chief executive officer, Xtrakter Ltd. “Being part of Euroclear will enable us to drive our matching, reporting and information services products into new areas, thereby helping to support our customers reduce further their operational cost of trading.”
“The acquisition of Xtrakter by Euroclear will allow Xtrakter to develop and enhance its market-led services in the context of the many advantages and synergies available from operating as part of a group providing world-class settlement and related services,” says Ren Karsenti, executive president, ICMA.
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