The Euroclear Boards have agreed to the largest-ever series of fee reductions in Euroclear Bank’s history. An unprecedented EUR 78 million in annualised tariff reductions will be shared with clients in 2007. In addition, Euroclear Bank clients will receive EUR 45 million in tariff rebates in early 2007 proportioned to the amount of safekeeping, settlement and securities-lending business they have placed with Euroclear Bank in 2006.
Starting in January 2007, a large part of the EUR 78 million in fee reductions will apply to safekeeping fees for Eurobonds and German debt securities. Greater sliding-scale volume discounts will also be implemented across Euroclear Bank’s safekeeping services, enabling clients to benefit from further discounts as they hold more of their securities positions with Euroclear Bank from their different locations and subsidiaries that may be doing business elsewhere.
Euroclear Bank fees for triparty collateral management services will be reduced by more than EUR 8 million as of February 2007. At that time, the settlement fee will be eliminated for client use of Euroclear Bank’s automated collateral allocation and monitoring system – AutoSelect – which is used by 98% of Euroclear Bank’s triparty-service clients.
“We are ending the year in a very strong financial condition, having won significant new client business and processing a record level of transactions from existing client,” says Martine Dinne, the Chief Executive Officer of Euroclear Bank.”We are pleased to be in a position to deliver EUR 120 million in savings to clients now, and incrementally over the next few years by sharing the benefits of platform consolidation and market-practice harmonisation. We are confident that the tariffs we will publish publicly in the new year, in compliance with Commissioner McCreevy’s Code of Conduct on clearing and settlement, will further reinforce Euroclear Bank’s competitive appeal.”