Acquisition by Euronext Securities - What’s Next?
In October 2024, Acupay and its sister firm, BondCom, joined Euronext, Europe’s leading market infrastructure. Now part of Euronext Securities, we are integrated into a robust ecosystem that connects issuers, investors, and intermediaries across Europe, delivering value-added services and innovative solutions.
Euronext Securities operates four central securities depositories (CSDs) in Italy, Portugal, Denmark, and Norway, creating a unified platform for securities settlement and issuer services. This network provides an ideal foundation for both Acupay and BondCom to enhance their offerings and expand their reach.
Building on Established Success
Acupay’s Expertise
Acupay already plays a critical role in Italy, providing issuer services to corporate clients issuing cross-border bonds through the Italian CSD. Our Acupay structure for Italian Yankee bonds facilitates access to U.S. investors, enabling issuers to tap into global capital markets. Building on this success, we are developing a similar structure for the Portuguese market, designed to help local issuers secure funding from foreign investors while navigating complex tax and regulatory requirements.
Acupay’s proprietary technology empowers brokers, banks, and custodians to manage cross-border withholding tax efficiently. By enabling the electronic preparation of tax certificates and linking custodians to securities issuers, we reduce friction in the tax reclaim process and minimize the impact of double taxation on cross-border investments.
Our Tax Processing as a Service (TPS) solution, currently employed by Euronext Securities Milan, simplifies withholding tax relief and attracts non-resident intermediaries, boosting fiscal efficiency and scalability. This proven solution underscores our ability to align with Euronext’s goal of offering streamlined, value-added services across markets.
BondCom’s Expertise
For over 20 years, BondCom has supported issuers in executing liability management exercises with precision and speed. From bondholder identification to tender offers, exchange offers, and consent solicitations, BondCom’s expertise and technology provide critical insights and actionable strategies for successful transactions. Having facilitated $1.8 trillion in bond volume across 51 countries, BondCom continues to be the trusted partner for issuers navigating complex liability management processes.
Expanding Horizons
Together, Acupay and BondCom are aligned with Euronext Securities’ strategic priorities, including enhanced tax compliance and issuer services. Our combined expertise allows us to deliver:
Efficient tax solutions: Simplifying compliance and minimizing the impact of withholding taxes on cross-border investments.
Seamless liability management: Supporting issuers with innovative tools for bondholder communication and transaction execution.
Looking ahead, our goal is to support Euronext Securities’ clients in overcoming tax complexities, offering streamlined tax management solutions, and facilitating cross-border trade growth through effective withholding tax services.
What’s Next?
We look forward to sharing our objectives for 2025 with you in the next newsletter. Together with Euronext, we are shaping the future of cross-border tax services and supporting a more connected and efficient financial ecosystem. As part of Euronext Securities, we are well-positioned to contribute to the realization of the Capital Markets Union by streamlining tax processes and fostering seamless cross-border investments.