BizTerm Definition
Full Definition

A Brussels based clearance and settlement service for internationally traded securities. One of the two main European clearing organizations. It was set up by Morgan Guaranty Trust Company in 1968 to settle eurobonds. It is currently (in 1992) co-operatively owned by some 2,200 participants and is managed by Morgan. It handles: 1. clearance and settlement. 1. securities lending and borrowing. 2. money transfer and custody. 3. derivatives. 4. domestic debt instruments and equities. Since 1991 it has operated the DACE system (an acronym for the advance notice of Deadlines And Corporate Events) and uses the Euclid and Euclid PC systems. The other European clearing house is Cedel. They are currently (1992) developing an electronic link between themselves. See also Clear, Cedel, Electronic Settlement Office and eurobonds.

Previous Biz Term Next Biz Term