The value of securities held for Euroclear clients at the end of 2012 increased 4% on the previous year, from 22.1 trillion reached at year-end 2011 to 23.0 trillion at year-end 2012, almost 1 trillion more.
Euroclears global Collateral Highway mobilized 700 billion of collateralized transactions each day by year-end 2012, the first public figures revealed for the solution since its launch in July 2012. In 2011, Euroclear Banks triparty collateral management and Euroclear UK & Irelands delivery-by-value services achieved the equivalent of 503 billion per day.
Tim Howell, CEO of Euroclear, said: “The uncertainty and volatility of local and international capital markets have shaped our 2012 operating results. Above all, the trust that our clients place with us to safeguard their assets under such risk-prone market conditions is clearly evidenced in the EUR 23 trillion record attained in 2012. Moreover, providing deeper and more diverse pools of securities to be used as collateral, via the Collateral Highway, has attracted many new collateral givers and takers, as well as business partners, to Euroclear in order to better manage liquidity, credit and counterparty risks. In this regard, our relative peer performance is strong.”
Looking at operating results by segment, securities held in custody for clients by Euroclear Bank was 10.8 trillion in 2012, slightly above the 10.7 trillion the year before. The number of transactions processed by Euroclear Bank in 2012 rose to 64.2 million, 8% more than the 59.4 million in 2011.
The value of transactions processed by Euroclear Bank in 2012 declined to 307.1 trillion, a 7% reversal on the 328.5 trillion reported in 2011. The decline in turnover at Euroclear Bank is linked to lower trading volumes in European fixed income securities and lower ticket sizes.
The value of securities held for clients in Euroclear France was 5.3 trillion in 2012, an increase of 6% when compared to the 5.0 trillion in 2011. Turnover at Euroclear France slipped by 12% in 2012 to 71.8 trillion from 81.9 trillion in 2011.
Securities held for clients through Euroclear UK & Ireland increased by 12% in 2012 to a record equivalent of 4.5 trillion (3.8 trillion) from 4.0 trillion (3.4 trillion) the previous year. Turnover dropped by 5% in 2012 to the equivalent of 145.8 trillion (122.3 trillion) from 153.0 trillion (128.4 trillion) in 2011.
The value of securities held for clients at Euroclear Nederland was slightly up on the 2011 figure of 865 billion, totalling 873 billion at year-end 2012. Turnover dipped by 4% in 2012 to 4.5 trillion from 4.7 trillion in 2011.
The value of securities held for clients by Euroclear Belgium at year-end 2012 was 157 billion, over 20% higher than the 130 billion recorded in 2011. The record value of securities held on behalf of clients is directly linked to rapidly recovering equity market activity in Belgium. Euroclear Belgium retreated from its record 2011 turnover of 588 billion by 4% to 564 billion in 2012.
Euroclear Sweden once again topped its annual turnover record, achieving a 2% upswing to the new record of 11.4 trillion (SEK 99 trillion) in 2012 from the previous years 11.2 trillion (SEK 97 trillion). The number of transactions settled by Euroclear Sweden subsided by 15% during the year to 10.8 million compared with 12.7 million in 2011, largely as a result of lower levels of on-exchange equities trading. The value of securities held for clients by Euroclear Sweden rose by 5% to 1,092 billion (SEK 9.6 trillion) in 2012 compared with 1,039 billion (SEK 9.0 trillion) in 2011.
Securities held for clients increased by over 8% in 2012 to 237 billion from 219 billion in 2011. Turnover at Euroclear Finland receded by 14% in 2012 to 431 billion compared with 503 billion in 2011, while the number of transactions settled in 2012 remained flat with 2011 at 5.1 million. Reduced turnover at Euroclear Finland is ascribed to lower fixed-income trading volumes and the introduction of CCP netting for small cap equity trades in 2012.
Xtrakter processed a total of 1.2 billion transactions in 2012, representing a 26% increase from the 950 million transactions processed in 2011.
The value of funds held for clients in 2012 reached EUR 1.3 trillion, 8% higher than the 1.2 trillion at the end of 2011. FundSettles business continued to grow at a remarkable rate in 2012, with the value of assets under custody increasing by 33%. FundSettle now covers more than 65,000 offshore and domestic funds from 26 countries, including clients in-house funds. Fund orders routed through Euroclear UK & Irelands EMX Message System increased by 5% in 2012 to a record 41 million messages compared with 39 million messages in 2011.
(JDC)