Repo clearing in Europe: Trends, challenges, and Euronext’s strategic repo expansion

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Euronext’s Yama Darriet, head of OTC capture and Repo Expansion Initiative, derivatives and post-trade, discusses the firm’s major step forward in strengthening collateral management and repo clearing capabilities across Europe. 

With European capital markets in flux, collateral efficiency and robust repo clearing have never been more critical. The latest International Capital Market Association (ICMA) European Repo Market Survey (Number 48), conducted on 11 December 2024 and published in April 2025, reports that outstanding repo and reverse repo volumes fell to €10,860 billion—a 2.3 per cent decline from June 2024 and the first contraction since mid-2020. 

At the same time, the survey showed a slight convergence of outstanding reverse repo vs repo balances, underscoring how European Central Bank (ECB) quantitative-tightening measures and the repayment of targeted longer-term refinancing operations (TLTROs) are expanding available collateral pools and normalising repo rates.

Additionally, the ICMA survey data showed, that against this backdrop of shrinking volumes, electronification patterns are shifting; Voice and bilateral-brokered trades are regaining market share even as dealer-to-customer platforms continue to grow. 

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Cross-border US dollar (USD) transactions are surging, US Treasury securities (USTs) now dominate collateral pools at record levels, and haircut dynamics are evolving—asset-backed securities (ABS) and financial-corporate haircuts have increased, while covered bonds and mortgage-backed securities (MBS) have seen some relief. 

Meanwhile, regulatory reforms—from the European Market Infrastructure Regulation (EMIR) Refit in Europe to the US Securities and Exchange Commission (SEC)’s delayed US Treasury-clearing mandate—are driving firms to rethink collateral workflows and reporting infrastructure.

In the US, as noted previously, the SEC has recently extended the compliance deadlines for new regulations requiring certain US Treasury and repo transactions to be centrally cleared. Reuters reported that, originally set to be phased in by June 2026, the deadlines have been pushed back by a year to 2027 following concerns from US trade associations about possible market disruption. This extension provides firms with additional time to adapt and ensure operational readiness for the new clearing requirements, Reuters reporting concluded. 

While Europe does not yet have a similar mandate for central clearing of repo transactions, the developments in the US have sparked discussions among European market participants, a recent risk.net article reported. Notably, the Bank of England (BoE) is actively exploring the potential benefits of mandating central clearing for repo transactions on UK Gilts (UK government bonds), though no formal decision has been made. 

According to Risk.net, the BoE has been assessing the implications of such a mandate, particularly considering lessons learned from the 2022 Liability-Driven Investment (LDI) crisis and its recent system-wide exploratory scenario (SWES) stress test. This test revealed that during periods of market stress, banks tend to withdraw from repo markets, limiting liquidity precisely when buy-side firms need it most. Central clearing could mitigate these risks by reducing counterparty credit exposures and enhancing market resilience.

Although the BoE has not yet confirmed its plans, Governor Andrew Bailey has acknowledged that improving financial infrastructure — for example, expanding clearing for Gilt repo — could be a viable policy response to vulnerabilities in the market. 

Similarly, discussions are emerging in the European Union regarding a possible government bond clearing mandate, reflecting a broader regulatory trend inspired by US reforms, risk.net’s reporting concluded. 

Euronext’s strategic response: Enhancing repo clearing and collateral management

In response to these evolving trends, Euronext is committed to delivering innovative clearing and collateral management solutions that enhance market efficiency and liquidity — not just for repo, but across all asset classes.

A key development in this strategy is Euronext’s recently announced collaboration with Euroclear, its first of several strategic alliances with Tri-party agents (TPAs). 

On 11 February 2025, Euronext confirmed the alliance with Euroclear to strengthen its collateral management services. This alliance, and future similar collaborations, will enhance Euronext Clearing by providing clients with automated and adaptable collateral services.

Anthony Attia, Global Head of Derivatives and Post-Trade at Euronext, said of the announcement: “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. 

It demonstrates our commitment to delivering best-in-class clearing and collateral management solutions for our clients. It is a key milestone in the expansion across Europe of Euronext Clearing’s repo franchise. As we develop Euronext Clearing’s services, we are creating value for stakeholders and positioning Euronext at the forefront of innovation in clearing and collateral management."

Through these TPA collaborations, firms, such as Euroclear, manage the selection, valuation, and substitution of collateral, ensuring compliance with eligibility standards while optimising operational efficiency. 

 

Expansion of repo clearing services

The Euroclear collaboration is a key enabler of Euronext’s upcoming Repo Expansion Initiative; a phased-approach expansion of its repo clearing services; building on the 25-year strong foundation and expertise, where Euronext has been the trusted home of Italian repo clearing. The first phase — the Repo Foundation — is scheduled to launch in June 2025.

This enhanced offering is designed to attract international counterparties and expand Euronext’s repo clearing operations beyond Italy; covering a broader range of European government bonds, including Spanish, Portuguese, and Irish govies in June 2025, followed by German, French, Dutch, Belgium, and Euro-denominated in September 2025. Austrian and Finnish will follow by December 2025.

The Repo Expansion Initiative marks an important milestone in Euronext Clearing’s broader transition from an Italian-focused CCP to a pan-European cross-asset clearing house with membership solutions for both sell and buy-side firms. By providing clearing services across multiple markets and asset classes, Euronext is reinforcing its role in supporting liquidity, collateral efficiency, and risk management across European fixed income and repo markets. 

Additionally, this initiative aligns with Euronext’s wider market infrastructure, including the addition of the MTS trading platform; now part of the Euronext group after the acquisition of Borsa Italiana. Notably, repo trading at Euronext, through the MTS trading platform, now sees volumes exceeding 180 billion EUR a day*. 

*Internal MTS data accurate as of April 2025. 

For more details on the Repo Expansion Initiative, click here.

Market Trends and Regulatory Developments

The Euronext collaborations and the Repo Expansion Initiative coincide with a period of structural change in the European repo market. As the European Central Bank (ECB) ceases reinvestments of maturing bonds from its monetary policy portfolios from January 2025—equivalent to approximately €40 billion per month—the market is undergoing a substantial withdrawal of central bank-provided liquidity.

A Securities Finance Times article highlights a marked resurgence in cash-driven and triparty repo activity. Average daily term-adjusted repo volumes rose by 70% in 2023, increasing from €210.3 billion to €357.8 billion. Over the same period, general collateral and special repo segments expanded by 142% and 38% year-on-year, respectively.

However, growth has moderated in 2024, with a slowdown in overall volumes and a contraction in activity in some segments, reflecting changing collateral dynamics and reduced scarcity in certain sovereign bonds.

At the same time, triparty repo activity has continued to build momentum. As the ECB’s TLTRO III facility winds down, market participants have sought alternative funding sources. This has led to a rise in uncleared triparty repo transactions, with banks re-entering the lending space, corporates increasing their participation, and buy-side firms actively seeking returns through repo markets.

These shifts underscore the growing importance of netting efficiency and collateral optimisation—particularly as spreads between core and peripheral eurozone repo rates continue to compress to historic lows. The full findings are detailed in the April 2025 repo market analysis published in the latest ICMA European Repo Market Survey. 

Conclusion

Euronext’s Repo Expansion Initiative marks a major step forward in strengthening collateral management and repo clearing capabilities across Europe. By expanding access to cleared repo markets and reinforcing cross-border infrastructure, Euronext is helping market participants adapt to a rapidly evolving regulatory and liquidity environment.

Findings from the latest ICMA European Repo Market Survey indicate a contraction in outstanding volumes—reflecting the impact of central bank balance sheet reductions and seasonal balance sheet adjustments. Notably, net reverse-repo positioning has dropped to its lowest share of market activity in years, underscoring the importance of efficient collateral reuse and robust clearing solutions.

Looking ahead, repo desks should prepare for ongoing changes in collateral availability amid sustained sovereign issuance and quantitative tightening. Diverging funding dynamics between US dollar and euro markets, the continued push toward market electronification, and shifting post-trade regulatory requirements—such as SFTR and margining rules—are set to reshape operating models and counterparty workflows.

As Euronext continues its journey to a pan-European, cross-asset clearing provider, it is uniquely positioned to support firms navigating these shifts. The growing demand for transparency, resilience and efficiency across funding markets reinforces the critical role of clearing in the next phase of European capital markets.

Please note that since publication, some data included may no longer reflect the latest market developments, particularly considering the significant movements seen during the first quarter of 2025.

Footnotes

(Source: ICMA-European-Repo-Market-Survey-Number-48-Conducted-December-2024-Published-April-2025-090425.pdf, April 2025)

(Source: SEC extends key deadlines for US Treasury clearing rule, Reuters, 26 February 2025)
 (Source: Gilt repo clearing mandate on Bank of England’s radar, Risk.net, 12 March 2025)

(Source: ICMA European repo survey shows outstanding value of €10.8 trillion, Securities Finance Times, 09 April 2025)

 

R21428 - IT Business Analyst

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Euronext Securities has a central function in the financial sector in Europe, and as part of Euronext, we believe our solutions must come from an international perspective. We do this in collaboration between colleagues in Norway, France, Portugal, Italy and Denmark - and we need more skilled analysts to help us. Could this be you?

It is important that you want to be part of an inspiring work environment with collaboration and sharing of knowledge and ideas. Additionally, you consider responsibility and having ownership as a natural part of your work.

Euronext Tech Leaders welcomes eight new companies on the occasion of its 2025 annual review

Himalaya Shipping transfers to Euronext Oslo Børs

Euronext to launch Container Freight Futures

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Euronext will introduce Container Freight Cash-Settled Futures contracts in Europe, settled to the Xeneta Shipping Index by Compass (XSI®-C).


Access the replay: webinar “Introducing Euronext Container Freight Futures” 

The Euronext Container Freight Cash-Settled Futures contracts will provide an effective solution to face volatile ocean freight rates, while empowering the shipping industry with the same tools used in commodities and finance. 
 
With prices based on the Xeneta Shipping Index by Compass (XSI®-C) daily freight rate benchmark, administered by Compass, Euronext’s Container Freight Futures will bring predictability, transparency, and opportunity to freight pricing. 

The introduction of Container Freight Futures responds to a growing recognition that freight rate hedging is the missing link in comprehensive supply chain risk management. Euronext Container Freight Futures address the industry's need for effective tools to manage geopolitical uncertainty, capacity fluctuations, and shifting demand. With this initiative, Euronext provides both the logistics sector and the financial community with a long-awaited, robust solution for managing freight rate risk.


Who are Container Freight Futures for? 

Importers, exporters (shippers), freight forwarders, NVOCCs, ocean carriers, logistics procurement teams, as well as investors and traders looking to hedge container freight rate risk, secure logistics costs, or take positions on freight rate movements with daily price transparency and central clearing.


Why trade Container Freight Futures?

Volatility Protection 
Freight futures provide a hedge against unpredictable rate fluctuations, reducing exposure to sudden cost surges or drops. 

Price Transparency 
Continuous trading and daily publication of index pricing (via Xeneta’s XSI®-C) enhance visibility in a traditionally opaque market.  

Budget Stability 
More predictable logistics costs and revenues support accurate financial planning and help prevent margin erosion. 

Competitive Advantage 
Early adoption enables more stable pricing models and improved negotiation leverage with supply chain partners.
 

Key features of the Euronext Container Freight Futures include:

Route-Specific Contracts 
Hedge exposure with precision using contracts tailored to four major trade lanes for Forty-Foot Equivalent Unit (FEU) containers across Asia–Europe, Transatlantic, and Trans-Pacific routes: 

  • Far East to Northern Europe 

  • Far East to US West Coast 

  • Northern Europe to Far East 

  • Northern Europe to US East Coast 

Each contract corresponds to a selected corridor and is linked to the Xeneta XSI®-C, enabling granular risk management across both headhaul and backhaul flows. 

Market Transparency 
Continous trading on a central order book that reflects real-time freight rate movements. Establishing the first forward curve for container shipping, enhancing price discovery and planning. 

Financially Settled, No Physical Delivery 
Contracts are cash-settled in USD, eliminating the need to move containers or manage physical delivery. At expiry, Euronext Clearing handles final settlement based on the difference between the traded price and the index value — simplifying participation for both logistics and financial players. 

Central Clearing & Risk Management 
All trades are centrally cleared through Euronext Clearing (CCP), which guarantees contract performance and eliminates bilateral counterparty risk. Margining and robust risk controls provide security and market stability, even in volatile conditions. 

Flexible Contract Maturities
Futures are listed on a hybrid cycle with five expiries per year: March, April, June, September, and December. This structure allows for short-term hedging of seasonal price spikes or longer-term exposure management. 

Index-Linked Pricing 
Each futures contract is based on Xeneta’s trusted XSI®-C index — a neutral, independent benchmark of real market container freight rates sourced from a global data pool. 

Broad Market Access 
Open to a wide range of participants: shippers, NVOCCs, freight forwarders, ocean carriers, shipowners, brokers, and institutional investors. This inclusive design concentrates liquidity in a single, transparent marketplace and supports dynamic two-way trading.


For more information

Contact the Euronext Commodities team at Commodities@euronext.com  

Visit the official index calculation agent's website

Access the webinar replay  “Introducing Euronext Container Freight Futures” organised on 26 June 2025, where Euronext and Xeneta provided an overview of the project, shared some technical details and answered questions.

R21884 - Strategic Project Manager

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Submitted by master_of_puppets1 on

As a strategic project manager, your key accountabilities will be:

Project Leadership

  • Lead the project from requirements definition through deployment, including risk mitigation.
  • Analyze project status and revise scope, schedule, or budget as necessary.

Process Management

R21974 - Group Data - Trainee

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Euronext is the leading pan-European market infrastructure, shaping capital markets for future generations. Its mission is to connect European economies to global capital markets, to accelerate innovation and sustainable growth. Euronext is located in 18 countries across Europe, US and Asia, with regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. The group has expanded organically and externally, with a revenue growing from €458 million in 2014 to €1.5 billion in 2022, with 2,200 employees and 55 nationalities.

Euronext–Nasdaq Clearing Agreement: Power Derivatives Transfer Set for March 2026

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Following the binding agreement to acquire Nasdaq’s Nordic Power Futures business, Euronext confirms that the transfer of open interest from Nasdaq Clearing to Euronext Clearing is scheduled to take place over the weekend of 14 March 2026.

This migration will follow the technical launch of the Euronext Nord Pool Power Futures market, which will benefit from Euronext Clearing’s proven risk model and comprehensive clearing services.

Clearing Members Readiness
 

The onboarding documentation for Clearing Members is accessible on Connect.

The External User Acceptance (EUA) environment has been available to support testing of the Euronext Nord Pool Power Futures Market since 17 March 2025.


Migration rehearsals

The successful completion of at least one migration rehearsal is mandatory for all Clearing Members with open interest to be migrated. This must be conducted in close coordination with their respective Trading Members. The rehearsal is a critical step to simulate the migration of positions under conditions identical to the actual migration weekend, thereby validating the robustness of procedures and controls. To participate meaningfully, clients must be fully set up in the Production environment prior to the start of the migration rehearsal window.
 

Migration milestones

Date Description
29 November 2025 Migration rehearsal (Window 1)
24 January 2026 Migration rehearsal (Window 2)
14 February 2026 Migration rehearsal contingency date
14 March 2026 Migration of open interest
18 April 2026 Migration contingency date


The migration of open interest from Nasdaq to Euronext Clearing and the wind-down of Nasdaq’s Nordic Power Futures trading and clearing services, are both contingent on the completion of the transaction between Euronext and Nasdaq. The remaining regulatory approval for Euronext Clearing is expected by the end of June 2025.

For further information, contact the Euronext Clearing Sales team at

 CCP-sales@euronext.com

Euronext expands European repo clearing as part of its growth strategy

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Thanks to a combination of market and regulatory drivers, repo clearing looks set to grow globally.  From June 2025, Euronext will broaden its repo clearing services — responding to client demand and preparing for potential regulatory shifts.

This expansion initiative – which includes expanding the scope of European government bonds beyond Italy, enhancements to liquidity, collateral optimisation and risk management capabilities and the inclusion of an attractive GC basket and enhanced client clearing access – is a key part of Euronext’s “Innovate for Growth 2027” strategy, launched in November 2024.

In this DerivSource Q&A, Janina Marks, Head of Sales and Business Development – Derivatives & Clearing, Euronext, shares why Euronext Clearing is doubling down on repo, how this will benefit market participants, and what the roadmap looks like.   

Q: What are the main market and regulatory drivers you are seeing in the repo space?

A: Not long ago, we had a market were cash chased collateral. Now it’s the other way around — collateral is chasing cash. That's largely due to tighter liquidity conditions, driven largely by central banks unwinding their asset purchases and reinvestments.

At the same time, regulation continues to reshape the space. European Market Infrastructure Regulation (EMIR), Securities Financing Transaction Regulation (SFTR), and broader prudential rules have made repo markets more resilient, but also more complex — especially around reporting, counterparty risk, and margin processes.

Even though overall availability has improved, we still see pinch points — often seasonal or jurisdiction-specific — that drive up funding costs and dampen liquidity. That’s why clearing is becoming more attractive. It’s also something regulators have looked closely at, including the Bank of England in its Gilt market review.

Q: Can you walk us through the roadmap for the Repo Expansion Initiative—separated into 2 distinct phases—and why certain European government bonds (like Irish, Portuguese, and Spanish) are being prioritised?   

A: Sure — we’ve broken this down into two phases.

Phase 1, which we’re calling the “Repo Foundation,” goes live in June 2025. This includes adding Irish, Portuguese, and Spanish government bonds to our coverage, plus enhanced collateral management and optimisation features through our triparty agent (TPA) collaboration with Euroclear. That’s just the first of several collaborations we plan with leading TPAs, aimed at helping firms optimise their balance sheets.

We’re also adding new eligible currencies and securities, so clients can work with more flexibility in terms of collateral.

This phase is designed for banks and Debt Management Offices (DMOs) trading and clearing on a principal basis. We’re aligning with the product suite available on MTS — part of the Euronext Group — and offering the full value chain: trading, clearing, and settlement, all in one place.

We’re starting with these three bond markets but will expand to a broader range of European sovereigns – German, French, Dutch, Belgium, and Euro-denominated in Q3 2025 and Austrian and Finnish will follow by the end of Q4 2025.

Then comes Phase 2, – The Repo Expansion – set for go-live in June 2026. That’s when we scale up further — bringing in new trading venues, more triparty providers and settlement platforms, and launching a sponsored access model for the buy side and agency clearing firms.

We’re also developing tradeable triparty GC baskets, and a range of additional product enhancements. So, lots to come — stay tuned.

Q: How has the increased interest in repo clearing informed Euronext’s “Innovate for Growth 2027” strategy?

A: It’s been a huge driver. One of the clearest messages from the market was the need for a pan-European solution — not just fragmented national offerings.

We’ve built on our strengths across the full value chain: trading through MTS, multi-asset clearing with Euronext Clearing, and the strong network of Euronext Securities (our CSDs). That foundation gave us the confidence to scale our repo services and support clients more holistically.

And it goes beyond repo. We’re expanding our fixed income franchise with the launch of mini futures on European government bonds. We’re also building our commodities offering with new power derivatives and the acquisition of Nasdaq’s power derivatives open interest (subject to regulatory approval).

Q: How does your experience clearing Italian government debt provide a foundation for this broader initiative?   

A: It’s our starting point — and a strong one. We’ve been clearing Italian government debt for around 25 years and currently have over 50 clearing members connected to our platform.

That experience gives us credibility and scale. More broadly, we believe having multiple CCPs in the ecosystem encourages competition, drives service improvement, and helps spread counterparty risk.

Repo expansion

Q: Aside from expanding coverage, what are the key improvements you’re introducing to the repo clearing service?

A: By mid-2026, we’ll offer a broad range of European government bonds as mentioned, supported by a dynamic Value-at-Risk (VaR) model that delivers margin efficiency and cost savings.

We’re also rolling out enhanced collateral management through TPAs, a flexible GC basket offering to improve access and liquidity provision, and direct buy-side access to the clearinghouse.

Q: That sounds great. You mentioned collateral optimisation previously. Can you expand on this for the readers? How are you improving collateral optimisation?

A: We’re starting with Euroclear, our first TPA collaboration, and will add more over time. This makes it easier for clients to connect using their existing infrastructure and helps them put their collateral to work more efficiently.

TPAs handle corporate actions, substitutions, and help clients meet margin calls — all in a streamlined, automated way. It’s a big step forward in terms of operational efficiency.

Q: How does Euronext Clearing differentiate itself — whether through access, cost, or efficiency?

A: We’re laser-focused on making it as easy as possible for clients to connect — across trading, clearing, and settlement.

On the collateral side, our TPA partnerships give clients the flexibility to plug into our services without overhauling their existing systems.

As mentioned, our dynamic VaR margin model is another key differentiator — it optimises costs while ensuring risk protection. And because we’re a multi-asset platform, firms benefit from lower costs, better operational resilience, and the ability to consolidate their services with a single provider.

Q: Looking ahead: Are there other strategic initiatives under the “Innovate for Growth 2027” plan where you see strong potential for impact?   

A: Yes, as mentioned earlier, we have several in the pipeline including the launch mini bond futures designed for retail-sized trading — a first for Europe in September.

We are keen to work with clients to codesign solutions for gaps in the market and will continue to listen to market feedback.

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