Euroclear expands its offering with Eurex Clearing
With the expansion, Euroclear Bank will be able to boost operational efficiencies for market users and streamline collateral management.
With the expansion, Euroclear Bank will be able to boost operational efficiencies for market users and streamline collateral management.
Executives from LCH, SIX, EuroCCP and Eurex populated a panel at the PostTrade 360° event in Stockholm last week to discuss the current state of affairs in the UK and European clearing markets.
According to Eurex, giving a greater range of market participants direct clearing house access will deliver tangible efficiencies to their repo operations.
Pressures from COVID-19, regulations and changing geopolitical market trends, as well as low volumes, have forced Eurex to prioritise other activities.
The move could provide significant savings for banks that have faced increased regulatory costs to trade in the balance sheet-intensive repo market.
CSDR requires a neutral third-party to act as the buy-in agent, which Eurex STS aims to become through its new banking license.
Representatives from LCH and EuroCCP highlight contradicting trends they are seeing in clearing activity throughout Europe following Brexit.
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
The newly formed Eurex Securities Transactions Services, a subsidiary company of Deutsche Boerse, will offer the buy-in agent service.