Euronext collaborates with Euroclear to bolster collateral ...

Euronext and Euroclear have collaborated to support the development of Euronext Clearing’s collateral management services for repo and other asset classes.  

Anthony Attia

The development comes as part of Euronext’s plan to expand its Italian repo clearing franchise to a wider range of European government bonds.  

As part of the move, Euronext Clearing will use Euroclear as its first triparty agent to allow for improved collateral management capabilities.  

Through the use of Euroclear’s solutions, Euronext Clearing will provide clients with automated and flexible collateral solutions, helping to improve operational efficiency and margin and balance sheet optimisation.  

Euroclear will operate as an independent third party, managing the selection, valuation and substitution of collateral, ensuring that it meets eligibility criteria. 

In addition, Euroclear will handle settlement and custody, provide regular reporting and ensure regulatory compliance, with the aim of allowing clients to benefit from improved liquidity management and a reduction in burdens associated with administration.  

“This partnership marks a significant milestone in Euronext’s ‘Innovate for Growth 2027’ strategy, reinforcing Euronext Clearing’s role as a cornerstone of the group’s broader strategic ambitions,” 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.” 

Collaborating with Euroclear will come as part of the release of Euronext’s new repo clearing offering in June 2025, enabling the onboarding of clients with an updated risk framework.  

The firms added that clients will be able to use Euroclear as a triparty agent for repo clearing. 

Read more: Euronext bolsters European derivatives offering with German, Irish and Portuguese single stock options 

“Strengthening collaboration between market players is crucial for growth and stability in European capital markets,” said Marjie Verhelst, head of product strategy and collateral management and securities lending at Euroclear. “This initiative highlights the vital role of our global and neutral infrastructure in helping our clients optimise their collateral allocation, reducing fails and credit usage, and increasing flexibility and predictability for dealers.”