- Triparty collateral solution strengthens capital efficiency, operational scalability, collateral and liquidity management for a growing international client base
Euronext, the leading European capital market infrastructure, and BNY, a global financial services company, announced a strategic collaboration to enhance the collateral management capabilities of Euronext Clearing across asset classes, notably for cleared repo. By leveraging BNY’s world-class collateral infrastructure and $7.8 trillion liquidity pool, this collaboration enhances the collateral management capabilities of Euronext Clearing, enabling members to manage their cleared activity more efficiently, including margin and default fund contributions. Euronext joins a growing number of CCPs trusting BNY’s collateral solutions to support efficient and scalable cleared market activity. This initiative represents a key step in expanding Euronext’s pan-European repo clearing offering, supporting clients with more efficient, flexible and scalable collateral solutions as demand for cleared repo continues to grow across Europe.
Advancing capital efficiency through collateral optimisation
Under this collaboration, BNY will act as a triparty agent, enabling enhanced collateral management capabilities for Euronext’s members. By combining BNY’s Global Collateral Platform with clearing capabilities from Euronext Clearing, clients will have access to automated and flexible collateral solutions designed to improve operational efficiency, optimise margin and balance sheet usage, and enhance liquidity management. As an independent third party, BNY’s leading platform for managing collateral at scale will support the selection, valuation and substitution of collateral, ensuring compliance with eligibility requirements while enabling efficient collateral optimisation. Importantly, clients will be able to manage both cleared and uncleared exposures on a single integrated platform, providing greater transparency, control, operational consistency and potential optimisation benefits across all their collateral activity.
Supporting the next phase of European cleared repo market evolution
The collaboration comes at a time of structural change in European repo markets, as participants are facing tighter balance sheet constraints, evolving regulatory expectations and increasing demand for centrally cleared solutions. Euronext Clearing’s value proposition now extends beyond Italian government bonds to a broader range of asset classes, enabling the onboarding of international banks and institutional clients.
Enabling scalable growth under Innovate for Growth 2027
Collaborating with BNY is a foundational element in the scaling of Euronext’s expanded repo clearing offering. It forms part of Euronext’s broader “Innovate for Growth 2027” strategy, aimed at strengthening its post-trade franchise and delivering best-in-class clearing and collateral management solutions. This collaboration marks the expansion of Euronext’s triparty collateral ecosystem, building on earlier integrations with triparty agents, and reinforcing Euronext Clearing as a scalable and flexible platform for collateral optimisation.
Camille Beudin, Chief Diversification Officer, Euronext, said: “This collaboration with BNY represents another important milestone in the execution of our Innovate for Growth 2027 strategy. By enhancing our triparty collateral capabilities, we are enabling clients to manage collateral more efficiently, optimise capital usage and access deeper liquidity pools. This is central to our strategy to build a more integrated, resilient and competitive European market infrastructure.”
Gesa Johannsen, Executive Platform Owner for Global Collateral Platform, BNY, said: “As the collateral industry increasingly adopts clearing solutions, we are excited to collaborate with Euronext Clearing, bringing our global expertise in designing capital-efficient, integrated repo clearing and collateral solutions to the European market. By connecting Euronext Clearing into BNY’s $7.8 trillion Global Collateral platform, clients benefit from access to deep liquidity and can seamlessly optimise collateral across cleared and uncleared obligations on a single, integrated platform.”
Source: Euronext
