Euroclear relocates holding company from London to Brussels

Euroclear announced plans for a new Irish CSD as it continues its preparation for the UK’s exit from the EU.

Euroclear has announced a significant corporate restructuring through plans of a new holding company in Brussels, as it continues its preparation for the UK’s exit from the EU.

Lieve Moistry, chief executive of Euroclear, announced the plan at its annual investor day, stating the central securities depository (CSD) will shift its domicile and tax residency from London to Brussels.

It is the second preparatory move by Euroclear in a month following after it said it will put forward plans to build a new CSD in Ireland, using its existing CREST system.

While Euroclear’s headquarters is based in Brussels, it has historically been a UK plc company and a tax resident in Switzerland.

Moistry added it will continue to operate a London subsidiary and remains committed to serving the UK market post-Brexit.

Earlier this year global exchange group Intercontinental Exchange (ICE) increased its stake in Euroclear to 10%, in a move enabling both groups to work together on new initiatives.

Euroclear also announced it will launch a new IT infrastructure for Euroclear Finland and its other Nordic CSDs.