Euroclear reported a turnover, or value of transactions settled, of 580.6 trillion in 2011, a 10% increase compared with 526.1 trillion in 2010. The value of securities held for Euroclear clients at the end of 2011 was a record 22.1 trillion, slightly higher than the 21.9 trillion at year-end 2010.
The groups Euroclear Bank entity posted record operating results in 2011, with the value of transactions processed rising to 328.5 trillion, a 24% increase from the 265.8 trillion reported in 2010. Securities held in custody for clients rose by 3% to 10.8 trillion at the end of 2011 from 10.5 trillion at the end of 2010. The number of transactions processed by Euroclear Bank in 2011 rose to 59.4 million, 25% more than the 47.7 million in 2010.
Triparty collateral management deals outstanding administered by Euroclear Bank at the end of 2011 averaged 324.1 billion, 7% more than the 302.9 billion per day at the end of 2010. Volume increases in 2011 slowed in comparison with previous years as banks de-leveraged their balance sheets.
The combined daily value of collateral provision outstanding in Euroclear Bank rose by 7% in 2011. When combined with Euroclear UK & Ireland, the total value declined by 3% in 2011 to 503.1 billion from 520.1 billion at the end of 2010.
Looking at other business entities in Euroclear group, turnover at Euroclear France rose by 9% in 2011 to 81.9 trillion from 75.3 trillion in 2010. The value of securities held for clients was 5.0 trillion in 2011, slightly less than the 5.1 trillion in 2010.
Securities held for clients through Euroclear UK & Ireland increased by 4% in 2011 to a record equivalent of 4.0 trillion (3.4 trillion) from 3.8 trillion (3.3 trillion) the previous year. Turnover dropped by 9% in 2011 to the equivalent of 153.1 trillion (128.7 trillion) from 169.0 trillion (145.7 trillion) in 2010.
At year-end 2011, average daily out standings in daily Delivery-by-Value (DBV) and money-market instrument repo instructions at Euroclear UK & Ireland decreased to the equivalent of 179.0 billion (150.5 billion), 18% lower than the 217.2 billion (187.3 billion) reported in 2010. Euroclear said the decline reflects general UK market conditions in that overnight and longer-term securities financing activity remained under pressure due to counterparty liquidity and credit constraints. Moreover, further consolidation among Euroclear UK & Ireland clients reduced volumes overall. Euroclear, which launched its DBV collateral management service in the UK and Ireland in July 2011, said client uptake has grown consistently.
With turnover in 2011 rising 5% from 4.5 trillion in 2010 to 4.7 trillion in 2011, Euroclear Nederland settled 5.2 million securities transactions in 2011, 5% more than the 4.9 million transactions processed in 2010.
Euroclear Belgium experienced an 18% rise in turnover in 2011 to a record 588 billion compared with 498 billion in 2010. The number of transactions settled in 2011 also rose by 4% to 1.9 million from 1.8 million in 2010. The value of securities held for clients at year-end 2011 was 130 billion, 19% lower than the 162 billion in 2010.
Euroclear Sweden again achieved record results in annual turnover in 2011, having grown by 6% to the equivalent of a record 11.2 trillion (SEK 101.1 trillion) from 10.5 trillion (SEK 100.1 trillion) in 2010. The number of transactions settled by Euroclear Sweden advanced by 8% during the year to 12.7 million compared with 11.7 million in 2010. The value of securities held for clients by Euroclear Sweden fell by 7% to EUR 1,039 billion (SEK 9.4 trillion) compared with EUR 1,123 billion (10.2 trillion) in 2010.
Turnover at Euroclear Finland increased 5% in 2011 to 503 billion compared with 479 billion in 2010, while the number of transactions settled in 2011 remained flat with 2010 levels at 5.1 million. Securities held for clients decreased by 16% in 2011 to 219 billion from 262 billion in 2010.
Fund transaction processing continued to grow in all entities of the Euroclear group offering fund-processing services. The number of fund transactions processed by the Euroclear group reached an unprecedented 15.4 million in 2011, 14% above the 13.5 million processed in 2010.
Orders routed through the EMX Message System increased by 6% in 2011 to a record 39 million messages compared with 37 million investment fund transaction messages in 2010.
The value of funds held for clients in 2011 reached 1.2 trillion, 13% below the 1.38 trillion at the end of 2010, with the value of funds serviced by FundSettle increasing by 5% in 2011. FundSettle now covers more than 63,000 offshore and domestic funds from 22 countries, including clients in-house funds.
(JDC)