The European Central Bank will diversify its securities lending infrastructure and transfer part of its securities lending business to centrally cleared repo transactions.
The European Central Bank (ECB) will join the LCH’s RepoClear SA, a Euro government bond cash, repo trade, and GCPlus triparty basket repo clearing service during the first quarter of 2026, according to LSEG officials. LCH is an LSEG company.
“The ECB will diversify its securities lending infrastructure and transfer part of its securities lending activities on its monetary policy portfolios to centrally cleared repo transactions,” according to officials. The ECB will be a direct member of RepoClear SA under the Special Clearing Membership model, which allows central banks, supranationals and agencies to onboard the central counterparty for clearing.
The trend of central clearing for repo transactions “supports the smooth functioning and the resilience of euro area repo markets. These markets play a crucial role for the transmission of our monetary policy and the redistribution of liquidity in the financial system. Central clearing will diversify our securities lending channels for monetary policy portfolios and will also contribute to broadening our existing market intelligence in this core segment,” says Imène Rahmouni-Rousseau, director general of market operations at the ECB, in a prepared question.
Officials say RepoClear SA clears daily over €1trillion in nominal across 12 European government bond markets and sovereign, supranational, and agency bonds. The service offers risk management, netting efficiencies, and access to the GCPlus triparty repo market.
The LSEG oversees the London Stock Exchange (LSE) and is a major market and reference data provider. Based in London, has significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific. The company employs more than 26,000 people globally, more than half located in Asia Pacific.
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