Market Size of Europe Clearing Houses And Settlements Industry
|2020 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 2.02 Quadrillion
|Market Size (2029)
|USD 2.19 Quadrillion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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Europe Clearing Houses And Settlements Market Analysis
The Europe Clearing Houses And Settlements Market size in terms of transaction value cleared is expected to grow from USD 2.02 quadrillion in 2024 to USD 2.19 quadrillion by 2029, at a CAGR of 1.59% during the forecast period (2024-2029).
The clearing houses and settlements market ensures the transaction goes smoothly, with the buyer receiving the tradable goods he intends to acquire and the seller receiving the right amount paid for the tradable goods he is selling. Most of the payment, clearing, and settlement infrastructures in Europe and the broader European Union were created to meet the needs of individual countries. They were rather diverse and not necessarily suited to the needs of an internal market, let alone the needs of a single currency area. In Europe, the Settlement Finality Directive harmonized the laws of the member states to ensure the operations of payment and settlement systems, also in case of bankruptcy of a participant, during daytime and night-time settlement. The main achievements of the Settlement Finality Directive in Europe are:
(i) the elimination of the main risks incurred in payment and settlement systems
(ii) the smooth functioning of a system even after the application of a foreign insolvency law
(iii) legal certainty for collateral enforcement (also to the benefit of ESCB credit operations).
Clearing houses played a significant role in providing stability for financial markets during COVID-19 in European countries. Clearing houses operate behind the scenes to process transactions, mitigate risk by monitoring exposures and requiring margins to protect against a firm default, and promote efficiency and liquidity during the COVID-19 pandemic.