INTERNATIONAL: Agreement between the NBB and SEC on Euroclear

Wednesday March 15 2017

The National Bank of Belgium (NBB) announced that it has entered into an arrangement with the U.S. Securities and Exchange Commission (SEC) to add an addendum to its existing 2001 Understanding Regarding An Application of Euroclear Bank for an Exemption Under U.S. Federal Securities Laws.

Euroclear Bank is subject to prudential supervision and oversight by the NBB as a credit institution and a central securities depository.

The Depository Trust and Clearing Corporation (DTCC) and Euroclear have recently entered into a joint venture (DTCC-Euroclear Global Collateral Ltd.) that will provide collateral management services to their clients, which involves movements of securities in the central securities depository of DTCC. In that context, Euroclear Bank has applied for a modification of its existing exemption from registration as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934 and Rule 17Ab2-1 thereunder to provide limited “clearing agency services” for U.S. equity securities, in addition to continuing to provide limited clearing agency services for U.S. government securities.

On December 16, 2016, the SEC approved Euroclear Bank’s application for a modified exemption.

The SEC and NBB entered into the addendum to enhance their ability to exchange information related to these new services of Euroclear Bank.

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