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. Thats 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 partnerships 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.
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 so will continue to listen the market feedback.
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