Euronext has announced a collaboration with Euroclear to enhance collateral management within Euronext Clearing. The partnership aims to support the expansion of Euronext’s repo clearing services beyond Italy, covering a broader range of European government bonds.
As part of the initiative, Euronext Clearing will integrate Euroclear as its first triparty agent, allowing for automated and flexible collateral management solutions. By leveraging Euroclear’s infrastructure, clients will benefit from improved operational efficiency, enhanced liquidity management, and reduced administrative burdens. Euroclear will oversee the selection, valuation, and substitution of collateral, ensuring compliance with eligibility criteria while streamlining settlement and custody processes.
The collaboration supports Euronext’s plan to extend its repo clearing services beyond Italy, where it currently clears a substantial portion of MTS repo transactions. By integrating Euroclear’s collateral management solutions, Euronext Clearing seeks to improve efficiency and accommodate a broader range of European and international participants.
Expanding the repo franchise
Euronext Clearing has expanded its operations in recent years, growing from a domestic central clearing house to one of the largest in Europe. Its integration of clearing services across multiple markets and asset classes has increased its reach in the post-trade sector.
The collaboration with Euroclear is part of Euronext’s plan to develop its repo clearing business. A new repo clearing service is scheduled to launch in June 2025, allowing international banks to participate under a revised risk framework. Clients will have the option to use Euroclear as a triparty agent, streamlining collateral management and settlement processes.
Strategic ambitions
The collaboration is part of Euronext’s Innovate for Growth 2027 strategy, which focuses on strengthening its clearing and collateral management infrastructure. Anthony Attia, Global Head of Derivatives and Post-Trade at Euronext, described the initiative as a “key milestone” in Euronext Clearing’s European expansion. Meanwhile, Marije Verhelst, Head of Product Strategy and Collateral Management at Euroclear, emphasised the importance of partnerships in improving collateral allocation and reducing settlement risks.
