Securities Services
Euroclear's new CEO says Link Up Markets will be assessed on its merits
Despite Clearstream International courting Euroclear to join its Link Up Markets initiative, Euroclear's new CEO
Tim Howell says customers are not asking for it.
"Link Up Markets is the most advanced model of interoperability for the securities market infrastructure in Europe, and if Euroclear were to join the initiative it would make it more viable." That was the comment made by Clearstream International's CEO Jeffrey Tessler in financial-i's annual Securities & Asset Servicing handbook published in July.
Link Up Markets is a joint initiative designed to foster interoperability between domestic CSDs. Currently 10 CSDs have joined Link Up including depositories from Egypt and South Africa. Clearstream has wanted Euroclear to join the initiative for some time, however, Euroclear has been busy in recent months with internal management changes, including the appointment of new CEO Tim Howell, and in assuring its customers that despite delays, its Single Platform Custody is still on track and will be delivered using a more modular approach.
In a recent interview with Euroclear Bank's new CEO, financial-i asked him his thoughts on the Link Up Markets initiative. Tim Howell said the business case for joining Link Up Markets would be assessed in terms of a straightforward cost/benefit analysis. However, he said in discussions with its major customers not a single one had mentioned Link Up Markets. "I don't have customers knocking at our door saying we need to do this," Howell told financial-i.
Tessler told financial-i back in June that Euroclear like Clearstream was a firm believer in interoperability and that the Bridge between Euroclear Bank and Clearstream International was the best example of interoperability in Europe.Howell said he did not have a problem with interoperability, but he idea that interoperability is the only way of doing things is not necessarily the case.
For the full interview with Tim Howell subscribe to receive the Q3 10th anniversary issue of financial-i.
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