Euronext and Clearstream Partner to Boost Collateral Management
Euronext and Clearstream partnered to upgrade Euronext Clearing’s collateral management services, particularly in the repo segment. The focus is on scalable, efficient solutions.
Partnership Overview
Euronext and Clearstream have joined hands to improve post-trade infrastructure. The goal is to make Euronext Clearing more robust and adaptable. The partnership includes advanced collateral handling and clearing tools. The enhanced service is expected to go live in November 2025.
Clearstream’s Role as Triparty Agent
Clearstream will be the triparty agent for Euronext Clearing. It will manage collateral functions including selection, valuation, and substitution. Also, Clearstream will look after settlement and custody. It will ensure compliance with eligibility rules. The service includes comprehensive regulatory reporting.
Support for Repo Foundation Launch
The first phase of Euronext Clearing’s Repo Expansion Initiative, the Repo Foundation, will launch in June 2025. It will enable access for international participants and expand the product range.
Innovation through Data and AI
Clearstream also adds digital tools to the partnership. It includes AI-driven collateral schedule creation and data insights for liquidity optimization. These solutions support better decision-making and enhance operational efficiency.
Benefits for Traders
This partnership will offer these benefits:
Better Access to Repo Markets
Traders and investors will get access to Euronext’s expanding repo services, especially with the launch of the Repo Foundation in June 2025. It opens doors to new instruments and cross-border repo transactions.
Faster and Safer Collateral Handling
Collateral selection, valuation, and Substitution will become automated and compliant with Clearstream as the tri-party agent. It reduces operational errors and saves time.
Improved Margin Efficiency
Investors can optimise how much margin they post by using smarter collateral management. It frees up capital that can be used elsewhere.
Lower Operational Burden
Automated services will reduce manual work and paperwork. It makes processes like settlement, custody, and compliance simple and quick.
More Reliable Infrastructure
The partnership scales up Euronext’s clearing system. It creates a more stable and resilient platform for trading, especially during high-volume periods.
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 Clearstream
Clearstream is a major European post-trade services provider and international central securities depository (ICSD). It settles over 250,000 transactions daily. The company holds more than €16 trillion in assets under custody for around 2,500 clients in 110 countries. It offers settlement, custody, securities financing, collateral management, cash services, and fund processing via its Vestima platform.
Summing Up
The partnership creates a strong clearing and collateral system for European markets. Euronext gets scale and flexibility, while clients benefit from automation and regulatory support.
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