Post-trade consolidation in Europe continues after Euroclear, the clearing and settlement system, and the Amsterdam and Brussels stock exchanges announced their intention to merge the Belgian and Dutch central depositories, CIK and Necigef, into the Euroclear group.
Euroclear Bank will initially take a 51% controlling stake rising to 100% once the merger completes, some time towards the end of 2003. According to Euroclear, the new entity will provide custody and settlement for domestic securities trades in the Netherlands and for equity and corporate bond transactions in Belgium. Euroclear earlier this year announced it is to merge with Sicovam, France’s central securities depository, and the enlarged group will eventually have a combined turnover of E47.2bn.
A final merger agreement should be released within nine months and the operation will take place in two steps. Phase 1 includes creating links between CIK, Necigef and Euroclear so that Euronext trades, netted at Clearnet, can be settled at any of the three. Phase 2 involves a dual platform for central bank and commercial bank money settlement that will serve CIK and Necigef clients and leverage off the platforms belonging to Sicovam and Euroclear Bank.

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