Euroclear And Broadridge Plan To Jointly Offer End-To-End Shareholder Voting
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The Torrenzano Group
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Brussels and New York – October 5, 2010 – Broadridge Financial Solutions, Inc and Euroclear have signed a Memorandum of Understanding (MoU) whereby both firms are looking into forming an alliance to jointly strengthen shareholders’ governance rights by making it easier for investors to vote electronically at company general meetings.
Under the EU Shareholders’ Rights Directive, currently being transposed into Member State law, investors must have timely access to information relating to general meetings and the facilities to exercise their voting rights. The objective of the proposed alliance between Euroclear and Broadridge is to support the new regulatory landscape by offering an end-to-end voting solution for issuers and their agents, financial intermediaries and investors.
The services to be offered by the proposed alliance are expected to cover securities issued in certain countries where Euroclear has a central securities depository (CSD) beginning with listed equities in the Dutch market, ahead of the annual general meeting season in the first quarter of 2011.
Pierre Mahieu, Director, Euroclear Product Management, stated: “Our alliance with Broadridge aims to deliver a faster and more efficient means for shareholders – domestic or foreign – to vote at general meetings. Together, we will look to improve processing standards and automation levels for the voting process, in full accordance with stakeholder needs. We recognise the call for, and importance of, proper company governance, and have identified how we can play a more active role in alliance with Broadridge. Euroclear’s close relationship with European issuers and local market shareholders, coupled with Broadridge’s international reach and leading-edge voting technologies, make a compelling choice for voting services.”
James O’Regan, General Manager, Investor Communication Solutions, International, Broadridge, said: “Through this alliance, Broadridge and Euroclear are uniquely positioned to accelerate the delivery of advanced electronic solutions to the benefit of all constituents throughout the proxy vote processing lifecycle. We are strong advocates of the underlying EU market reforms to raise governance and better enfranchise the end investor, and our alliance is geared to delivering a highly efficient, best-practice model across designated markets.”
The proposed joint Euroclear/Broadridge offering, on an exclusive basis in certain markets, will include:
Note to editors
Broadridge is a technology services company focused on global capital markets. Broadridge is the market leader enabling secure and accurate processing of information for communications and securities transactions among issuers, investors and financial intermediaries. Broadridge builds the infrastructure that underpins proxy services for over 90% of public companies and mutual funds in North America; processes more than USD 3 trillion in fixed income and equity trades per day; and saves companies billions annually through its technology solutions. For more information about Broadridge, please visit www.broadridge.com.
Euroclear is the world’s largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions. User owned and user governed, the Euroclear group comprises the international central securities depository Euroclear Bank, based in Brussels, as well as the national central securities depositories Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear also owns Xtrakter, operator of the TRAX trade matching and reporting system.
In 2009, the Euroclear group settled the equivalent of EUR 514 trillion in securities transactions, representing 180 million domestic and cross-border transactions, and held more than EUR 20 trillion in assets for clients.
Euroclear Bank is rated AA+ by Standard & Poor’s and Fitch Ratings.