Euronext Clearing to enhance collateral management offering
11 February 2025 Europe
Image: Georgii/stock.adobe.com
Euronext has collaborated with Euroclear to support the development of Euronext Clearing’s collateral management services for repo and other asset classes.
The initiative is a step toward the expansion of Euronext’s Italian repo clearing franchise to a large range of European government bonds.
Euronext Clearing will use Euroclear as its first triparty agent to enable enhanced collateral management capabilities.
The firm will offer clients automated, streamlined and flexible collateral solutions, designed to improve 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, providing improved liquidity management and a reduced administrative burden.
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 also be able to use Euroclear as a triparty agent for repo clearing.
Anthony Attia, global head of derivatives and Post Trade at Euronext, says: “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 clearing and collateral management solutions for our clients. It is a key milestone in the expansion across Europe of Euronext Clearing’s repo franchise.”
Marije Verhelst, head of product strategy and collateral management and securities lending at Euroclear, adds: “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.”
The initiative is a step toward the expansion of Euronext’s Italian repo clearing franchise to a large range of European government bonds.
Euronext Clearing will use Euroclear as its first triparty agent to enable enhanced collateral management capabilities.
The firm will offer clients automated, streamlined and flexible collateral solutions, designed to improve 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, providing improved liquidity management and a reduced administrative burden.
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 also be able to use Euroclear as a triparty agent for repo clearing.
Anthony Attia, global head of derivatives and Post Trade at Euronext, says: “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 clearing and collateral management solutions for our clients. It is a key milestone in the expansion across Europe of Euronext Clearing’s repo franchise.”
Marije Verhelst, head of product strategy and collateral management and securities lending at Euroclear, adds: “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.”
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