On Tuesday, Euronext announced a collaboration with Euroclear to enhance its collateral management services for repo and other asset classes. The move marks an expansion of its clearing operations across Europe.
Euronext and Euroclear to Collaborate on Collateral Management Services
The firm explained that under the agreement, Euronext Clearing will use Euroclear as its first triparty agent, providing clients with automated and flexible collateral solutions.
The initiative is expected to expand Euronext’s leading Italian repo clearing franchise to include a wider range of European government bonds, benefiting European and international clients.
Euroclear will act as an independent third party, managing the selection, valuation and substitution of collateral to confirm it meets eligibility criteria while optimising operational efficiency.
The firm said it will also manage settlement and custody, provide regular reporting and ensure regulatory compliance, “allowing clients to benefit from improved liquidity management and a reduced administrative burden.”
“This partnership marks a significant milestone in Euronext’s ‘Innovate for Growth 2027’ strategy,” said Anthony Attia, Global Head of Derivatives and Post-Trade at Euronext. “It demonstrates our commitment to delivering best-in-class clearing and collateral management solutions for our clients.”
The collaboration is expected to support the launch of Euronext’s new repo clearing offering in June 2025. They believe it will enable international banks to onboard with an updated risk framework.
Marije Verhelst, Head of Collateral Management at Euroclear, highlighted the initiative’s role in helping clients “optimise their collateral allocation, reducing fails and credit usage, and increasing flexibility and predictability for dealers.”
