Euroclear acquires MFEX to enhance offering for fund distributors and fund managers

Rick Steves

This transaction brings together two highly complementary businesses.

Euroclear has acquired MFEX Group for an undisclosed sum six months after first announcing its intent to acquire the global digital fund distribution platform.

Euroclear will be able to enhance its offering for fund distributors and fund management companies by combining its FundSettle post-trade expertise and MFEX’s distribution platform.

MFEX’s broad fund distribution network and talented people will be complementary to Euroclear, enhancing and extending Euroclear’s customer proposition which will further grow the funds business.

Lieve Mostrey, Chief Executive Officer, Euroclear, said: “We are delighted to have completed the acquisition of MFEX Group. This transaction brings together two highly complementary businesses and we look forward to working with our new colleagues at MFEX to build a stronger fund distribution proposition for our clients.”

In 2020, Euroclear saw Marc Antoine Autheman stepping down as the Chairman and Director of the board of directors after steering the business through its response to the current COVID-19 situation.

In addition, Bert De Graeve has decided to take this opportunity to step down from his role as an independent non-executive director of Euroclear Holding. Harold Finders and Franco Passacantando have become independent directors at the level of Euroclear Holding SA/NV.

International central securities depositories (ICSDs) Clearstream Banking S.A. and Euroclear Bank SA/NV appointed China Construction Bank (Asia) Corporation Limited (CCB (Asia)) as common depository, safekeeper, and service provider for their international debt securities, also known as Eurobonds.

Clearstream and Euroclear act jointly as the central hub of issuance and deposit for Eurobonds. They work with a number of large financial institutions acting as common depositories to support issuers across the globe.

As a result, issuers benefit from greater investor reach by leveraging the ICSDs’ international client bases and multi-currency model.

This international issuance model is supported by an interoperable link allowing clients to settle cross-border transactions seamlessly throughout the day, thereby increasing the liquidity available to market participants.

CCB (Asia)’s Transaction Banking specialises in all aspects of Corporate Trust, Private Trust, Fund Trust, Loan Agency, Custody and Fund Administration businesses.

The business offers comprehensive and customised agency and fiduciary solutions to support the full spectrum of capital market, asset management and fund industry transactions.

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