Euroclear has recently announced that it has launched a US Treasury Delivery-Versus-Payment (DVP) repo service.
The solution is designed “for US Treasury repo market participants operating in the US settling USD transactions.”
The first trade was completed on 6 February 2025 “between Euroclear Bank and Toronto Dominion Bank London.”
The service offers cash lenders similar operational “efficiency for DVP repo transactions as triparty repo transactions.”
It optimises DVP repo settlement via FedWire Securities Services, thereby delivering economic benefits “through reduced operational and intraday liquidity costs.”
Repo collateral is held in a segregated account “with the cash lender’s custodian of choice.”
Electronic trading workflows on venues are integrated in to the new service, making activities such as “collateral allocation seamless for cash lenders and their counterparties.”
Voice-only and voice-assisted trades are also supported by the solution.
This offering is designed to administer cleared and non-cleared DVP repo by cash lenders including Fixed Income Clearing Corporation (FICC) DVP sponsored repo trades, giving cash lenders a scalable solution to transact in DVP repo.”
This is important given upcoming legislation including the US Treasury Clearing Mandate which will be introduced in mid 2026. Euroclear plans to roll out the new solution to other markets and currencies.
Euroclear has partnered with Matrix Applications using its TradeBlazer technology to support the “full suite of collateral management compliance and repo trade lifecycle events within the new solution.”
These include securities settlements, “margining, securities substitutions and coupon payment management.”
Euroclear has also deployed BBH Infomediary Data Solutions from Brown Brothers Harriman for “data integration and custodian communications, via SWIFT.”
Olivier Grimonpont, Euroclear’s Global Head of Market Liquidity said:
“The service was developed with significant input from market participants and their custodians, and will deliver the improved financial returns and diversification that these market participants seek. This launch plays a key role in our business strategy, delivering leading edge technology to enhance efficiencies for clients through market collaboration.”
Sinéad McIntosh, Managing Director for Financial Institutions servicing at Brown Brothers Harriman:
“A key objective of our strategy for financial institutions is to share our technology to deliver more effective operating models and enable product expansion. We are proud that BBH Infomediary Data Solutions is enabling Euroclear to do just that.”
James Tabacchi, President and CEO of Matrix Applications added:
“With Euroclear’s pedigree as an integral part of our financial markets and Matrix’s accomplished systems and software capabilities, we feel well positioned to provide technology-led financial solutions.”
