Following its September merger with CRESTCo, Euroclear, the world’s largest settlement system for domestic and international securities, has announced the creation of an Irish Market Advisory Committee (MAC). The group will represent the interests of the Irish securities market to the whole of the Euroclear group. Previously CRESTCo acted as the central securities depository for Irish equities and corporate bonds, while Euroclear Bank was the chosen settlement system for Irish government bonds.
The Irish MAC replaces the Irish Forum, formerly run by CRESTCo and the Irish Stock Exchange to solicit input from Irish member firms, but with an extended remit to include government-bond market interests as well.
The first meeting took place on November 20, 2002 and Brian Davy, chairman of Davy Stockbrokers, who has been appointed chairman of the Irish MAC declared himself happy with the inaugural get together. Speaking to Finance Davy said, ‘All the senior figures attended and Euroclear gave an impressive presentation.’
Davy went on to outline the rationale behind the merger between Euroclear and CRESTCo. ‘Euroclear covered Brussels, Amsterdam and Paris. This is the first attempt to bring settlement systems together’‚ he said.
‘The barrier to inter-exchange transactions was settlement, not the ability to deal’‚ he continued. ‘If you want to deal tomorrow in Milan, they will be delighted to deal with you. With internet access it is relatively easy to deal with some form of screen based dealing system so settlement is the key but firstly you have to get some form of settlement system developed in each centre’‚ he noted.
Market owned and governed, Euroclear provides securities services to major financial institutions located in more than 80 countries. It also acts as the central securities depository for all Dutch, French, Irish and UK securities. |
