Euroclear Bank, which is due to take over from JP Morgan running the banking function for Brussels-based settlement depository Euroclear, will begin operating on December 31, 2000.

The new bank, which will be market owned, replaces JP Morgan, which has provided banking services for Euroclear for the past 32 years and was the founder of Euroclear. The change follows Euroclear's decision to drop its association with a US investment bank because of plans to consolidate with other depositories in Europe.