Euroclear Bank is to manage settlement of JPMorgan’s Belgium primary dealership business. The market for Belgian government debt outstanding is valued at EUR 252 billion.
The American bank is the first to transfer its settlement business in Belgium from an agent bank to the Brussels-based ICSD.
Euroclear says it can provide primary dealers with centralised access to the main European National Debt Management Agencies, enabling them to consolidate transaction flows and cut back-office costs.
The ICSD adds that it can help market participants match trading instructions with counterparties prior to settlement, and offers seamless settlement of trades with domestic counterparties via its direct accounts in local central securities depositories (CSDs).
Euroclear is offering free intra-day securities borrowing, and direct feeds from major central counterparties and automatic trading systems.
"The centralisation of the settlement of our Belgian primary dealership business with Euroclear Bank will allow a simplification of the transaction flow and further improve the efficiency of our European government bond business operations," says Stefano Bellani, Managing Director and head of the European financing desk at JPMorgan in London.
Olivier Grimonpont, Director and head of product management for fixed-income securities and collateral services at Euroclear, says he is "delighted" by the appointment. "This decision reinforces our leadership position in supporting primary dealers, particularly within the Euronext zone, offering the highest settlement efficiency rates, transparent information flows between counterparties, exceptional financing capabilities, as well as a range of netting opportunities," he says.