Euroclear Bank has begun to deliver on its post-merger promise to cut tariff, by announcing reductions across a range of products and services.
Safekeeping fees for domestic debt securities in eight European Union markets have been reduced by up to 12 per cent, which Euroclear Bank says will yield savings of about Euros 4 million per year for clients. The tariff reductions apply to cross-border transactions in debt securities from Belgium, Finland, France, Germany, Italy, the Netherlands, Portugal and Spain.
In addition, Euroclear Bank says it is to cut its tariff for automated tri-party collateral management services by up to 20 per cent. These tariff reductions will take effect in June 2003.
In total, Euroclear Bank says its clients can expect to save Euros 22 million in 2003 as a direct result of fee reductions. This includes the Euros 10 million reduction in securities borrowing fees implemented on 1 January 2003 and the Euros 5 million in expected savings resulting from extended money transfer deadlines. Euroclear Bank also paid Euros 30 million in rebates to clients in January 2003.
“One of Euroclear Bank’s primary objectives is to deliver cost reductions to clients,” says Pierre Francotte, Chief Executive Officer of Euroclear Bank. “As the critical mass of business at Euroclear Bank increases, we can pass along the economies of scale to our clients. Together with the cost reductions arising from infrastructure consolidation, we believe that the Euroclear group is delivering the type of efficient, cost-effective environment that the market is demanding and that European policy-makers are designing to strengthen Europe’s competitive position in the global capital markets.”