Government bond settlement went live yesterday as part of the continuing process of consolidation in Europe's clearance and settlement industry. All Government bond settlement activity previously carried out by the Central Bank was to the Euroclear System.

This new arrangement will allow financial institutions to safekeep Government bonds and settle domestic and crossborder transactions in a single settlement location. It will also increase the liquidity of Government bonds in the international capital markets by facilitating access to a broader range of investors, Euroclear said.