First Phase of Repo Expansion Initiative Live on Euronext
Euronext has launched the first phase of its Repo Expansion Initiative, called the Repo Foundation. It is the beginning of a multi-year plan to transform Europe’s secured financing markets. The goal is to increase access, improve margin efficiency, and challenge outdated clearing models.
What is the Repo Foundation?
The Repo Foundation is the initial stage of Euronext’s expansion into secured financing. It extends Euronext Clearing’s services beyond Italy. It offers repo clearing to a broader set of European government bonds.
This launch lets international counterparties join the platform for the first time. Participants can connect through existing Euronext links or join as repo-only users. The platform supports efficient onboarding and scalable settlement processes.
Phased Rollout Timeline
Q3 2025
Euronext will expand clearing services to include French, German, Dutch, and Belgian government bonds. It will also add euro-denominated supranational issuances.
Q4 2025
Austrian and Finnish government bonds will be added. It will complete the initial rollout of sovereign debt coverage.
2026
Clients will get access to General Collateral (GC) baskets designed in collaboration with a leading triparty agent. These will enable risk offsets across correlated collateral.
Q2 2026
A sponsored access model will be introduced. It will allow buyside firms to use repo clearing without becoming direct clearing members.
Q3 2026
The entire Repo Expansion Initiative will be fully implemented. It will offer complete functionality and coverage.
Expanded Clearing Access and Integration
The Repo Foundation introduces a repo-only participation option. It lets firms without full Euronext membership access clearing services directly.
The onboarding process is streamlined and scalable. Euronext supports seamless integration with its existing clearing network.
Benefits for Market Participants
This initiative will offer these benefits:
Broader Collateral Coverage
Participants can clear repos for Italian, Spanish, Portuguese, and Irish government bonds. It broadens trading opportunities across European sovereign debt markets.
No Full Membership
Firms can join as repo-only participants or use sponsored access (from Q2 2026). It eliminates the need for full clearing membership and lowers entry barriers.
Improve Margin Efficiency
The redesigned margin methodologies offer tangible cost savings. Participants use less capital while meeting risk requirements more effectively.
Benefit from Cross-Margining
Clients can offset risk across multiple debt instruments within a single margin account (subject to approval). It increases capital efficiency.
Simplify Onboarding and Settlement
Euronext enables quick onboarding through existing connections and supports scalable settlement operations. It reduces operational delays.
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.
Summing Up
Euronext is redesigning secured financing with the Repo Foundation. The phased rollout introduces wider access, broader collateral coverage, and stronger risk management tools.
Register your company now and get featured on our homepage!
