Sprecher added ICE has begun engaging with Euroclear management where both groups can work beneficially together.
Gaining exposure to Europe’s custody and collateral management market was a key target for Intercontinental Exchange’s minority stake in Euroclear.
Speaking on the exchange group’s third quarter earnings call, Jeff Sprecher, chairman and CEO of ICE, said the deal will align it closer to Europe’s custody industry.
“At a moment in time when we think there’s a lot of change going on in — both in Europe and with respect to custody in terms of bank capital requirements and other pressures that are being put on the industry for cost,” said Sprecher.
“This stake allows us to have a closer relationship with the board and management of the company, and we believe that there will be a number of initiatives that we could work on jointly together in that context.”
ICE purchased a 4.7% stake from Royal Bank of Scotland (RBS) in October for €275 million, gaining the group at least one seat on Euroclear’s board of directors.
The acquisition marks the second purchase for the Atlanta-based exchange group in a central securities depository (CSD). In 2012, ICE bought 12.4% of Cetip, Brazil’s OTC derivatives and securities CSD for $512 million.