Euroclear said Tuesday that it has launched a US Treasury Delivery-Versus-Payment (DVP) repo service aimed at improving efficiency and liquidity management for market participants settling USD transactions.
Euroclear Announces US Treasury DVP Repo Service Launch
The first trade under the new service was completed on 6 February 2025 between Euroclear Bank and Toronto Dominion Bank London.
The firm explained in a press release that the new solution offers cash lenders operational efficiency similar to triparty repo transactions, integrating electronic trading workflows for seamless collateral allocation.
Repo collateral will be held in a segregated account with the lender’s custodian of choice, while voice-only and voice-assisted trades are also supported.
Additionally, the service is designed to handle both cleared and non-cleared DVP repo, including FICC DVP sponsored repo trades, providing a scalable and flexible solution for cash lenders.
It comes as market participants prepare for the US Treasury Clearing Mandate set to take effect in mid-2026. Euroclear also plans to expand the offering to other markets and currencies in the future.
Euroclear has partnered with Matrix Applications to use its TradeBlazer technology for collateral management, settlements, margining, and compliance processes.
Additionally, BBH Infomediary Data Solutions from Brown Brothers Harriman is expected to enable data integration and custodian communications via SWIFT.
“Euroclear is proud to bring this innovative service to the US Treasury repo market,” said Olivier Grimonpont, Euroclear’s Global Head of Market Liquidity “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. This launch plays a key role in our business strategy.”
