NEX Markets has announced that BrokerTec Europe Limited has worked with Eurex Clearing to launch a new clearing solution for the European repo market, which will be live by the end of this year.
Existing BrokerTec clients will be able to select to clear their repo transactions via Eurex Clearing, one of the largest global CCPs. Via the BrokerTec platform, market participants choosing to clear repo transactions will begin to consolidate their European repo and corresponding OTC and listed derivatives business under the single risk framework of Eurex Clearing.
The new clearing solution for the European repo market will provide a more efficient way of optimizing cross-asset portfolios, which enables such competitive markets to adapt to fundamental changes, such as Brexit and the European securities settlement engine, T2S. In addition, BrokerTec and Eurex Clearing will be targeting new clients and reach additional liquidity pools for its CCP.
Matthias Graulich, Member of the Executive Board, Eurex Clearing, commented: “In the future, the scale and scope of our cleared markets will provide unique capital and balance-sheet netting opportunities for clients across repo and derivatives.”
John Edwards, Managing Director, BrokerTec Europe, added: “As the leading dealer to dealer trading venue for both Euro and Sterling denominated repos, there are emerging opportunities in a post- Brexit world, as well as a desire to extend and diversify the clearing choices that our customers have when trading repo. By working with Eurex Clearing, this connectivity offers our trading participants further options when settling Special and GC repo transactions and providing capital efficiencies to our clients.”
The Industry Spread covered Eurex Clearing’s recent announcement regarding the expansion of its partnership program to repo to cover the repo and OTC foreign exchange (OTC FX) segments. As part of its partnership program Eurex Clearing shares governance and economics with the most active program participants.