Euronext and BNY Partner to Enhance Collateral Management
Euronext and BNY have announced a collaboration to strengthen Euronext Clearing's collateral management capabilities. The partnership will improve how clearing members manage collateral across asset classes, particularly in the cleared repo market. Euronext aims to help clients manage margin requirements and default fund contributions more efficiently. The initiative also supports the continued expansion of Euronext’s pan-European repo clearing offering.
How the Partnership Works
Under the collaboration, BNY will act as a triparty agent for Euronext Clearing members. BNY’s Global Collateral Platform will work alongside Euronext Clearing’s services to provide automated collateral management. The setup will help clients improve operational efficiency, make better use of their capital, and manage liquidity more effectively.
BNY will handle functions such as collateral selection, valuation, and substitution as an independent third party. It will help ensure that collateral meets eligibility requirements while letting clients optimise their collateral usage. Clients will also be able to manage cleared and uncleared exposures through a single platform. It gives them greater visibility and consistency across their collateral activities.
Changes in the European Market
The collaboration comes as European repo markets evolve. Market participants are dealing with tighter balance sheet constraints, changing regulatory expectations, and growing demand for centrally cleared solutions. At the same time, Euronext Clearing has expanded beyond Italian government bonds and now supports a wider range of asset classes.
Supporting Euronext’s Growth Strategy
The partnership forms part of Euronext’s Innovate for Growth 2027 strategy. It focuses on strengthening its post-trade business and expanding clearing and collateral management services. The collaboration also expands Euronext’s triparty collateral ecosystem and supports the development of a more scalable collateral optimisation platform.
According to Euronext, the partnership will help clients improve collateral efficiency, use capital more effectively, and gain access to deeper liquidity pools. The company sees these capabilities as important for building a stronger and more competitive European market infrastructure.
About Euronext
Euronext is a pan-European stock exchange group. It offers trading and post-trade services for equities, bonds, derivatives, commodities, and foreign exchange. The company aims to connect European economies to global capital markets. Euronext provides a single, integrated marketplace with a unified trading platform.
About BNY
BNY is one of the world's oldest and largest financial services companies. It traces its roots to the Bank of New York, founded in 1784 by Alexander Hamilton. That makes it the oldest continuously operating bank in the United States. Today, BNY operates at the center of global capital markets. It helps institutions manage, move, and safeguard money. Its services include asset custody, securities servicing, clearing and settlement, collateral management, treasury services, wealth management, investment management, foreign exchange, and liquidity solutions.
Wrapping Up
Euronext and BNY are combining their capabilities to support the growing demand for cleared repo services in Europe. The partnership aims to improve collateral efficiency, enhance liquidity management, and provide clients with a more integrated approach to managing their collateral obligations.
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