Euroclear Acquires Digital Fund Distribution Platform MFEX Group

The securities clearing firm first announced its intention to purchase MFEX Group on March 26, 2021.

Euroclear Group, a Belgium-based securities clearing firm, announced on Thursday that it acquired MFEX Group, a global digital fund distribution fund. According to the press release, the transaction was completed on Wednesday after Euroclear unveiled its intentions to purchase the fund in March.

The manoeuvre seeks to combine MFEX’s distribution platform with Euroclear’s FundSettle post-trade service to expand its offerings aimed at fund management firms and distributors globally. “We are delighted to have completed the acquisition of the MFEX Group. This transaction brings together two highly complementary businesses, and we look forward to working with our new colleagues at MFEX to build a stronger fund distribution proposition for our clients,” Lieve Mostrey, Chief Executive Officer of Euroclear Group, said.

MFEX was founded in 1999 with headquarters in Stockholm and offices in several major cities across Europe and Asia. Its portfolio of services includes trading and custody, distribution agreement and rebate collection, data and fund information, and due diligence related to Anti-Money Laundering and Know-Your-Customer procedures.

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Recent Euroclear Group Financial Results

In July, Euroclear Group reported strong growth in operating income and net profits. Its business income reached €723 million in the first six months of 2021, which is 13% higher compared to the same period in 2020. Additionally, net profit jumped 11% to €251 million in H1 of 2021. During the first half of 2020, the company posted a net profit of approximately €227 million.

For H1 of 2021, Euroclear reported an increase of 11% in EPS. However, operating costs spiked 4% to €444 million. In H1 of 2020, Euroclear posted operating costs of €428 million. Apart from the recent growth in its business income and net profit, Euroclear posted a jump in the total assets under custody.

The securities clearing firm has seen consistent growth in its business income in the last few years. In 2020, Euroclear Group reported a 12% jump in its business income compared to FY 2019.

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