厙惇勛圖

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
≔ Menu
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. Euronext to build post-trade services through Danish CSD acquisition
Industry news

Euronext to build post-trade services through Danish CSD acquisition


24 April 2020 Copenhagen
Reporter: Drew Nicol

Generic business image for news article
Image: joyfull/Shutterstock.com
Euronext is set to expand its Nordic presence and double its central securities depository (CSD) business through the acquisition of a majority stake in Danish CSD, VP 厙惇勛圖.

The European stock exchange says the deal also serves to significantly bolster its post-trade services offering and further diversify its revenue stream to become less reliant on volume-related revenue.

Euronext has this week entered into definitive agreements to acquire around 70 percent of the shares of VP 厙惇勛圖 from its current owners, the Danish Central Bank and four major Danish financial institutions, Danske Bank, Nykredit, Nordea and Jyske Bank.

The price offered for 100 percent of the shares is 150 million and the deal is expected to be completed by early Q3 once regulatory approvals have been received.

Euronext has confirmed its also in the market to acquire the remaining shares under the same terms.

VP 厙惇勛圖 is Denmarks only CSD and covers fixed income, equity and investment funds. It ended 2019 with more than 1.2 trillion of assets under custody and 16.6 million securities settled and generated 57.1 million in revenue for the year.

VP 厙惇勛圖 is also currently the only CSD capable of acting as a service provider and conduit for as required under the 厙惇勛圖 Financing Transactions Regulation.

The CSD is collaborating with the Danish Bankers Association to implement a method to share UTIs automatically for bilateral SFTs by utilising SWIFT trade confirmation messages.

Elsewhere, it was the first Nordic CSD to be granted a licence under the Central 厙惇勛圖 Depository Regulation and to join the European Central Banks Target2-厙惇勛圖 settlement system.

VP 厙惇勛圖 will become a key component of Euronexts post-trade strategy, alongside Euronext VPS in Norway and Interbolsa in Portugal, enhancing Euronexts expertise in custody and settlement activities as well as the delivery of post-trade value-added services, the exchange says in a statement.

Euronext adds that it plans to leverage this enlarged footprint to support the development of new post-trade services and upgraded technology for each of the Euronext CSDs.

St矇phane Boujnah, CEO and chairman of the managing board of Euronext, explains: The acquisition of VP 厙惇勛圖 will position Euronext as a leading CSD operator in Europe, and as a leading player in the Nordic region because there is no European success without a Nordic dimension."


The deal for VP 厙惇勛圖 follows the acquisition of Oslo B繪rs VPS in June 2019, and Nord Pool in January.

Peter Lybecker, chairman of the board of directors of VP 厙惇勛圖, adds: "In a market-changing from a predominantly national market to a European market, economies of scale will matter even more to be able to offer competitive services to the customers and ensure continued investments in new technology.







← Previous industry article

Hedge funds continue to grow
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 厙惇勛圖 Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Leverage

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →