An introduction to the European Post-Trade Market - Clearstream

Exhibit 5: Estimated total investor spending related to securities in Europe
Revenue pool 2002, in € billion
Total 2)
~ 40.0
17.4
22.6
Post-trade services
The total post-trade revenues amount to approximately 0.2 percent of EU15 GDP. Compared to other
industries, such as the electricity or fixed-line telecommunication sectors, which are about ten times
as large, 25) the post-trade industry is small.
2.6 Summary
2.5
1) Non post-trade services offered by (I)CSDs
2) Including commission and spread
3) Excludes revenues not related to post-trade services (e. g. banking services)
Source: Morgan Stanley, Mercer Oliver Wyman, 2003; McKinsey analysis
1.9
Data-analysis provider Exchanges
excl. Equity CCPs
THE EUROPEAN POST-TRADE MARKET
Overview of the Post-Trade Market
There are five distinct post-trade functions (clearing, settlement, custody, safekeeping, and the notary
function). These functions are provided by custodians, agent banks, CSDs, ICSDs, common depositories
and registrars in an agent capacity which involves no principle risk. Starting in the late 1980s,
considerable consolidation has taken place for CSDs and ICSDs, as well as for banks in the area of
post-trading within Europe. The post-trade market is rather small, representing a revenue pool of
approximately 0.2 percent of EU15 GDP.
25) Electricity providers and distributors generate revenues of €180 billion (Eurelectric, 2004); fixed-line telecommunication services generate
a revenue pool of €176 billion (Gartner Research, 2004).
0.1
1.4
0.1 1)
16.0
18.0
Equity CCPs (I)CSDs 3) Agent banks /custodians
15