The Europe Clearing Houses And Settlements Market size in terms of transaction value cleared is expected to grow from USD 2.02 quadrillion in 2024 to USD 2.19 quadrillion by 2029, at a CAGR of 1.59% during the forecast period (2024-2029).
The clearing houses and settlements market ensures the transaction goes smoothly, with the buyer receiving the tradable goods he intends to acquire and the seller receiving the right amount paid for the tradable goods he is selling. Most of the payment, clearing, and settlement infrastructures in Europe and the broader European Union were created to meet the needs of individual countries. They were rather diverse and not necessarily suited to the needs of an internal market, let alone the needs of a single currency area. In Europe, the Settlement Finality Directive harmonized the laws of the member states to ensure the operations of payment and settlement systems, also in case of bankruptcy of a participant, during daytime and night-time settlement. The main achievements of the Settlement Finality Directive in Europe are:
(i) the elimination of the main risks incurred in payment and settlement systems
(ii) the smooth functioning of a system even after the application of a foreign insolvency law
(iii) legal certainty for collateral enforcement (also to the benefit of ESCB credit operations).
Clearing houses played a significant role in providing stability for financial markets during COVID-19 in European countries. Clearing houses operate behind the scenes to process transactions, mitigate risk by monitoring exposures and requiring margins to protect against a firm default, and promote efficiency and liquidity during the COVID-19 pandemic.
SEPA settlement and clearing system are managed by the European Commission and the European Central Bank (ECB) collaboratively through the European Payments Council. The European Central Bank chaired the council, which, together with representatives from government and consumer groups, works to govern the board and steer its agenda.
TARGET2 participants are EU central banks and their national communities of commercial banks. More than 1,700 banks use TARGET2 to initiate transactions in EUR, either on their behalf or on behalf of their customers. Considering branches and subsidiaries, more than 55,000 banks across the world (and all their customers) can be reached via TARGET2.
The major services dominating the market are TARGET2, SEPA, and EBICS. The major players in this market are Euroclear, Clearstream Banking, LCH.Clearnet, SIX x-clear, BME Clearing, and others.
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The clearing houses and settlements market ensures the transaction goes smoothly, with the buyer receiving the tradable goods he intends to acquire and the seller receiving the right amount paid for the tradable goods he is selling. Most of the payment, clearing, and settlement infrastructures in Europe and the broader European Union were created to meet the needs of individual countries. They were rather diverse and not necessarily suited to the needs of an internal market, let alone the needs of a single currency area. In Europe, the Settlement Finality Directive harmonized the laws of the member states to ensure the operations of payment and settlement systems, also in case of bankruptcy of a participant, during daytime and night-time settlement. The main achievements of the Settlement Finality Directive in Europe are:
(i) the elimination of the main risks incurred in payment and settlement systems
(ii) the smooth functioning of a system even after the application of a foreign insolvency law
(iii) legal certainty for collateral enforcement (also to the benefit of ESCB credit operations).
Clearing houses played a significant role in providing stability for financial markets during COVID-19 in European countries. Clearing houses operate behind the scenes to process transactions, mitigate risk by monitoring exposures and requiring margins to protect against a firm default, and promote efficiency and liquidity during the COVID-19 pandemic.
Europe Clearing Houses And Settlements Market Trends
SEPA Schemes are Driving the Market
The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for the simplification of bank transfers denominated in euros. SEPA covers the whole of the European Union. Other countries and territories which are part of the geographical scope of the SEPA schemes are Andorra, Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino, United Kingdom, Vatican City State, Mayotte, Saint-Pierre-et Miquelon, Guernsey, Jersey, and Isle of Man.SEPA settlement and clearing system are managed by the European Commission and the European Central Bank (ECB) collaboratively through the European Payments Council. The European Central Bank chaired the council, which, together with representatives from government and consumer groups, works to govern the board and steer its agenda.
TARGET2 is Dominating the Clearing Houses and Settlements Market
TARGET2 is the leading European settlement and clearing platform for processing large-value payments and is used by both central banks and commercial banks to process payments in EUR in real time. Central banks and commercial banks can submit payment orders in EUR to TARGET2, where they are processed and settled in central bank money, i.e., money held in an account with a central bank.TARGET2 participants are EU central banks and their national communities of commercial banks. More than 1,700 banks use TARGET2 to initiate transactions in EUR, either on their behalf or on behalf of their customers. Considering branches and subsidiaries, more than 55,000 banks across the world (and all their customers) can be reached via TARGET2.
Europe Clearing Houses And Settlements Industry Overview
The Europe clearing houses and settlements market is consolidated, with fewer players dominating the market. The market is expected to have new entrants during the forecast period, with a rise in technological innovations and newer services.The major services dominating the market are TARGET2, SEPA, and EBICS. The major players in this market are Euroclear, Clearstream Banking, LCH.Clearnet, SIX x-clear, BME Clearing, and others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET INSIGHTS AND DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Methodology
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