Euroclear launches US Treasury DvP repo service
18 February 2025 Belgium
Image: Marcos_Osorio_Stocksy/stock.adobe.com
Euroclear has launched a US Treasury delivery-vs-payment (DvP) repo service.
The new solution is designed for market participants operating in the US, settling US dollar transactions.
According to Euroclear, the service offers cash lenders similar operational efficiency for DvP repo transactions as that of triparty repo transactions.
“The service was developed with significant input from market participants and their custodians, and will deliver the improved financial returns and diversification that these market participants seek,” says Olivier Grimonpont, Euroclear’s global head of market liquidity.
By optimising DvP repo settlement via FedWire Securities Services, Euroclear aims to deliver economic benefits through reduced operational and intraday liquidity costs.
Repo collateral is held in a segregated account with the cash lender’s custodian of choice, while electronic trading workflows on venues are integrated into the new service.
In addition, this offering is designed to administer both cleared and non-cleared DvP repo by cash lenders, including FICC DvP sponsored repo trades.
This addresses the upcoming legislation, including the US Treasury Clearing Mandate, which will be introduced in mid-2026.
Euroclear partnered with Matrix Applications, using its TradeBlazer technology to support the full suite of collateral management compliance and repo trade lifecycle events within the new solution.
These include securities settlements, margining, securities substitutions, and coupon payment management.
Euroclear also deployed BBH Infomediary Data Solutions from Brown Brothers Harriman for data integration and custodian communications via SWIFT.
“A key objective of our strategy for financial institutions is to share our technology to deliver more effective operating models and enable product expansion. We are proud that BBH Infomediary Data Solutions is enabling Euroclear to do just that,” says Sinéad McIntosh, managing director for financial institutions at Brown Brothers Harriman.
Euroclear Bank and Toronto Dominion Bank London completed the first trade on 6 February 2025.
The firm also notes that there are plans to roll out the new solution to other markets and currencies.
The new solution is designed for market participants operating in the US, settling US dollar transactions.
According to Euroclear, the service offers cash lenders similar operational efficiency for DvP repo transactions as that of triparty repo transactions.
“The service was developed with significant input from market participants and their custodians, and will deliver the improved financial returns and diversification that these market participants seek,” says Olivier Grimonpont, Euroclear’s global head of market liquidity.
By optimising DvP repo settlement via FedWire Securities Services, Euroclear aims to deliver economic benefits through reduced operational and intraday liquidity costs.
Repo collateral is held in a segregated account with the cash lender’s custodian of choice, while electronic trading workflows on venues are integrated into the new service.
In addition, this offering is designed to administer both cleared and non-cleared DvP repo by cash lenders, including FICC DvP sponsored repo trades.
This addresses the upcoming legislation, including the US Treasury Clearing Mandate, which will be introduced in mid-2026.
Euroclear partnered with Matrix Applications, using its TradeBlazer technology to support the full suite of collateral management compliance and repo trade lifecycle events within the new solution.
These include securities settlements, margining, securities substitutions, and coupon payment management.
Euroclear also deployed BBH Infomediary Data Solutions from Brown Brothers Harriman for data integration and custodian communications via SWIFT.
“A key objective of our strategy for financial institutions is to share our technology to deliver more effective operating models and enable product expansion. We are proud that BBH Infomediary Data Solutions is enabling Euroclear to do just that,” says Sinéad McIntosh, managing director for financial institutions at Brown Brothers Harriman.
Euroclear Bank and Toronto Dominion Bank London completed the first trade on 6 February 2025.
The firm also notes that there are plans to roll out the new solution to other markets and currencies.
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