Zurich-based financial infrastructure group SIX will acquire a 50% stake in leading European trade repository REGIS-TR during the first half of 2022, from joint venture partner Clearstream. Financial terms for the deal were not disclosed.
The joint venture between BME’s Iberclear- which was acquired by SIX in June 2020 — and Deutsche Börse’s Clearstream was founded in 2010 and has successfully grown into a leading European trade repository with more than 3.2 billion trade messages processed during 2020.
Deutsche Boerse said the decision to sell was made as part of Clearstream’s continuous strategic review of its business portfolio. Future strategic efforts will focus on growing custody services and to further strengthen the company’s leadership position in funds services.
REGIS-TR is an important complimentary business to SIX’s existing services with significant potential for further growth. The full consolidation of the business represents an opportunity for SIX to further integrate and deliver a suite of leading streamlined services to customers across Europe, SIX said on Friday (Sept. 3).
Javier Hernani, Head Securities Services & member of Executive Board, SIX, highlighted: “We are very happy to now fully integrate the REGIS-TR business, which has already been an integral part of BME’s business portfolio. We look forward to taking the business into its next phase of development within SIX. We are delighted to now fully welcome the entire REGIS-TR team and their talent and expertise to SIX.”
Thomas Steimann, CEO of REGIS-TR stated: With the acquisition REGIS-TR will continue to leverage on the strong operational connections with SIX, we will take advantage of a very experienced and seasoned management team with a deep knowledge of the Trade Repository environment and continue with our dedication to service excellence for our customers.”
SIX operates and develops infrastructure services for the Swiss and Spanish Stock Exchanges, for Securities Services, Banking Services and Financial Information. The company is owned by its users (121 banks). With a workforce of some 3,500 employees and a presence in 20 countries, it generated operating income of CHF 1.38 billion and Group net profit of CHF 439.6 million in 2020. Since the beginning of 2021, trading turnover on the Swiss stock exchange reached CHF 867.7 billion with a total of 42,557,169 transactions.
REGIS-TR is the leading European trade repository offering reporting services covering all the major European trade repository obligations. In accordance with legislation promoting market transparency, the detail of the trades reported is aggregated to present a composite view of current positions for the benefit of regulatory authorities and market participants. REGIS-TR is open to financial and non-financial companies and institutions.
Clearstream, provides the post-trade infrastructure for the Eurobond market and services for securities from 58 domestic markets worldwide. With 16 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.