CRESTCo announced today a rebate of GBP 7.5 million – or around 10% of fees received in 2006 - to its clients. The rebate will be paid in a lump sum to each client in early 2007, based on the transactional fees paid by the client in 2006.
Tim May, Chief Executive Officer of CRESTCo, said: “Due to very high transaction volumes settled by CREST in 2006, we are able to close the year living up to our commitment to reduce costs to clients whenever possible. The rebate is a true reflection of the economies of scale that are realised with increased use of the CREST system. Taking into consideration this rebate and the tariff reductions implemented in April 2005 and May 2006, we will have saved clients more than GBP 25 million.”
Fees that will be eligible for rebate are those that were paid by clients for using the CREST system, such as for transaction settlement and custodyrelated services. It is expected that all CRESTCo client segments, including the wholesale and retail markets, custodians and registrars, will benefit from a rebate of up to 10%, in proportion to the transactional fees paid to CRESTCo.
CRESTCo Limited operates the real-time securities settlement system for Irish, UK, Jersey, Isle of Man, Guernsey and international securities through the CREST system. CRESTCo Limited is a wholly owned subsidiary of Euroclear SA/NV.
Euroclear recently finalised an agreement, effective January 2007, to acquire EMXCo, the UK’s leading provider of mutual-fund order routing, to deliver enhanced UK fund-processing efficiency and cost savings. (www.emxco.com)
Euroclear is the world’s largest provider of domestic and cross-border settlement and related-services for bond, equity and fund transactions. Market owned and market governed, the Euroclear group comprises Euroclear Bank, based in Brussels, as well as Euroclear Belgium, France, Euroclear Nederland, CRESTCo, the central securities depositories (CSDs) of Belgium, France, the Netherlands, and the UK and Ireland, respectively. The total value of securities transactions settled by the Euroclear group is in excess of EUR 350 trillion per annum, while assets held for clients are valued at more than EUR 15 trillion. Euroclear Bank is rated AA+ by Standard & Poor's and Fitch Ratings.
