Euronext has announced a new collaboration with Euroclear to support the development of Euronext Clearing’s collateral management services for repo and other asset classes.
The initiative is a major step to enable Euronext’s ambition to expand its leading Italian repo clearing franchise to a large range of European government bonds bringing an efficient value offering to European and international clients.
Euronext Clearing will use Euroclear as its first triparty agent to enable enhanced collateral management capabilities. Leveraging on Euroclear’s solutions, Euronext Clearing will offer clients automated, streamlined and flexible collateral solutions, improving operational efficiency and margin and balance sheet optimisation. Euroclear will act as an independent third party, managing the selection, valuation and substitution of collateral to ensure it meets eligibility criteria while optimising operational efficiency. It will also handle settlement and custody, provide regular reporting and ensure regulatory compliance, allowing clients to benefit from improved liquidity management and a reduced administrative burden.
The support of Euroclear’s collateral management infrastructure, which handles an average in daily collateral, will strengthen Euronext Clearing’s ability to deliver efficient, scalable services that address the evolving needs of its clients, with additional partnerships expected to further reinforce this approach.
This initiative builds on Euronext Clearing’s unique position in the Italian repo market, where it already clears a significant portion of MTS repo activity, and lays the foundation for the next phase of the Euronext Clearing repo expansion to new European geographies.
Euronext Clearing has undergone remarkable development in the last three years, evolving from a domestic central clearing house into the third-largest European clearing house. The integration of clearing operations across multiple geographies, diverse markets and various asset classes has solidified Euronext Clearing’s position as a European leader.
Collaborating with Euroclear will pave the way for the rollout of Euronext’s new repo clearing offering in June 2025, enabling the onboarding of clients including international banks, with an updated risk framework. Clients will be able to use Euroclear as a triparty agent for repo clearing.
Anthony Attia, Global Head of Derivatives and Post-Trade at Euronext, said: “This partnership marks a significant milestone in Euronext’s “Innovate for Growth 2027” strategy, reinforcing Euronext Clearing’s role as a cornerstone of the group's broader strategic ambitions. It demonstrates our commitment to delivering best-in-class clearing and collateral management solutions for our clients. It is a key milestone in the expansion across Europe of Euronext Clearing’s repo franchise. As we develop Euronext Clearing’s services, we are creating value for stakeholders and positioning Euronext at the forefront of innovation in clearing and collateral management."
Marije Verhelst, Head of Product Strategy and Collateral Management and Securities Lending at Euroclear said: “Strengthening collaboration between market players is crucial for growth and stability in European capital markets. Euroclear has a long-standing track record of providing collateral management solutions across Europe and beyond. This initiative highlights the vital role of our global and neutral infrastructure in helping our clients optimise their collateral allocation, reducing fails and credit usage, and increasing flexibility and predictability for dealers.”