Euroclear to acquire Xtrakter from ICMA

20 November 2008

Euroclear and the International Capital Market Association (ICMA) signed an agreement whereby Euroclear SA/NV will acquire 100% of Xtrakter Ltd, the ICMA subsidiary, for an undisclosed cash amount. Xtrakter owns TRAX, a trade matching and regulatory reporting system that also provides market and reference data. Pending receipt of regulatory approvals, Xtrakter will become a wholly owned subsidiary of Euroclear SA/NV and a sister company to the Euroclear group’s international and national central securities depositories, and EMXCo. The Xtrakter business will complement the OTC trade matching and routing service (ETCMS) offered by Euroclear Bank since 2000.

Completely automating the flow of trade information from trade matching through to settlement is a key client benefit deriving from this transaction. By the end of 2009, trade data already input into the TRAX system will be processed straight through to settlement at Euroclear, thereby eliminating trade matching duplication, reducing settlement fails, costs and risks. Moreover, the ability to help clients meet their mandatory regulatory reporting of transaction information will be enhanced through this business combination, while strengthening Euroclear/Xtrakter’s appeal to the market as a provider of these services. The competent authorities in key markets such as Belgium, France, the Netherlands and the United Kingdom have awarded MiFIDcompliant Approved Reporting Mechanism (ARM) status to one or both entities.

Ignace R. Combes, Deputy Chief Executive Officer of Euroclear SA/NV, said: “Combining the pre-settlement services and expertise of Xtrakter with the highly efficient transaction-settlement prowess of Euroclear will deliver a competitively priced, full STP service from trade matching to settlement. By looking upstream to trade matching, we are continuing to increase efficiency and lower back-office costs for clients by streamlining processes and eliminating fragmentation.”

Kevin Milne, Chief Executive Officer of Xtrakter Ltd, said: “Under our new ownership, we will maintain our strategy of delivering ongoing improved client services across all our business lines. Being part of Euroclear will enable us to drive our matching, reporting and information services products into new areas, thereby helping to support our customers reduce further their operational cost of trading.”

Euroclear is the marketing name for the Euroclear System, Euroclear plc, Euroclear SA/NV and their affiliates. René Karsenti, Executive President of ICMA, said: “When the Association launched TRAX 20 years ago, it was in response to the clear industry need for a market-wide trade matching system. The acquisition of Xtrakter by Euroclear will allow Xtrakter to develop and enhance its market-led services in the context of the many advantages and synergies available from operating as part of a group providing world-class settlement and related services.”

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