Late last week the Euroclear board of directors approved annualised tariff reductions of €27 million. The bank claims to have made cuts worth €78 million already this year.
Retroactive to 1 June 2007, the new round of tariff cuts will apply to safekeeping fees for eurobonds and bunds. This is the second tariff reduction for these securities this year. The €11 million in safekeeping fee cuts will also apply to Argentine and Greek debt securities. In addition, says Euroclear Bank, the latest tariff reduction will save its clients about €16 million in communication fees across all channels.
"Frequent tariff reductions have become a Euroclear hallmark," says Frédéric Hannequart, chairman of the board, Euroclear Bank. "More than €100 million in tariff reductions have now been put in place for our clients' advantage in 2007, in addition to the €45 million rebated in January for business activity in 2006. Providing clients with value for money everyday is an important part of business priorities. Our programme includes both short-term deliverables through regular tariff reviews and longer-term client benefits through our platform consolidation and market-practice harmonisation initiatives."