Euronext launches European repo clearing expansion
WHY IT'S IMPORTANT:
Euronext, which already offers clearing for repo agreements in Italian government bonds, said its "Repo Foundation" initiative would expand to include French, German, Dutch, and Belgian government bonds in the third quarter, and then Austrian and Finnish government bonds in the fourth quarter of this year.
For the first time, international firms can join the platform — either through existing Euronext connections or as repo-only participants.
A repo, or repurchase agreement, is a type of short-term loan for dealers in government debt.
In a repo, one party sells an asset to another party at one price and commits to repurchase the same or another part of the same asset from the second party at a different price at a future date or on demand. If the seller defaults during the life of the repo, the buyer can sell the asset to a third party to offset its loss.
KEY QUOTE:
"The Repo Foundation is the first phase of our wider Repo Expansion Initiative — a multi-year strategy to deliver a fully integrated, pan-European clearing model," said Anthony Attia, global head of derivatives and post-trade at Euronext.
"With a strong footprint in Italian repo, a growing list of government bond coverage, and the majority of key clearing members already connected, Euronext is well positioned to become the clearing house of choice for European repo," he said.
The International Capital Markets Association (ICMA) estimates the total value of the European repo market at around 10.86 trillion euros ($12.8 trillion).
($1 = 0.8506 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
Spain's gas demand soars as power plants burn more since blackout
MADRID, July 22 (Reuters) - Spain has increased the amount of gas it burns to produce electricity as its power grids rely more on conventional gas-fired plants since a major blackout on April 28, gas grid operator Enagas ( opens new tab said on Tuesday. Conventional power plants like gas-fired combined cycle plants provide more stability to the grid's voltage than renewable sources such as wind farms and photovoltaic panels. As a result, overall national gas demand rose 5.6% in the first half of the year, boosted by a 41.2% increase in demand to generate electricity, Enagas said. Gas exports also rose in the period, in particular flows to France to fill its underground storage. Spain does not produce natural gas but re-exports gas shipped from producers such as the United States, Qatar and Russia to other European countries. "Gas infrastructure plays a critical role in ensuring the security of the energy and electricity system and enabling the energy transition in Spain and Europe," Enagas Chief Executive Arturo Gonzalo said on Tuesday. Spain's own underground gas storage facilities are over 75% full, he said, adding that this is above the 64% minimum the European Commission set for July 2025.
Reuters
2 hours ago
- Reuters
Spain's Enagas swings to first-half net profit
MADRID, July 22 (Reuters) - Spanish gas grid operator Enagas ( opens new tab said on Tuesday it booked a net profit of 176 million euros ($205.66 million) in the first half of the year, helped by gains from a disposal and the upwards revision of the amount it was awarded in an arbitration on an investment in Peru. In the same period last year, the company had a loss of 211 million euros, dragged by a capital loss on the sale of an asset in the U.S. The company said it is on track to achieve its profit target for the year. ($1 = 0.8558 euros)
The Sun
10 hours ago
- The Sun
Ryanair boss considering increasing bonus paid to staff for flagging oversized bags
RYANAIR boss Michael O'Leary said the airline is considering increasing a bonus paid to staff for intercepting excess baggage. Employees currently earn around £1.30 per item for flagging oversized bags, which is capped at £70 per month. 1 However, O'Leary said it could rise to motivate staff and curb the 'scourge' of excess baggage. He told RTE's Morning Ireland: 'We're flying largely full flights, about half the passengers can bring two bags and the other half can only bring one — because that's all that fits in the plane. 'We're already struggling with that amount of baggage.' The firm currently includes a small carry-on bag — capped at a size of 40x20x25cm and weight of 10kg – with every ticket. Passengers are charged a fee of up to £65 for bringing luggage that is larger than they paid for while booking their journey. Mr O'Leary said: 'We are happy to incentivise our (staff) with a share of those excess baggage fees, which we think will decline over the coming year or two.' European lawmakers want easier baggage rules, but Mr O'Leary dismissed the idea, saying that cabin space is already limited. Ryanair recently reported a quarterly net profit of £710million. more than doubling last year's figures, as fares surged 21 per cent. However, passenger growth remains hampered by delays in aircraft deliveries. Airport baggage handler issues warning about item 'never to pack' that will see you 'called from plane' and searched BP'S NEW BOSS BP has officially appointed a successor to outgoing chairman Helge Lund. Albert Manifold, former CEO of building materials firm CRH, will take the reins on October 1. Dame Andrea Blanc, who led the successor search, said he was the 'ideal candidate to oversee BP's next chapter.' Shares rose by 1 per cent after the news yesterday. Outgoing boss Mr Lund left after backlash over a failed green energy pivot. INFLATION HITS SAVERS MILLIONS of Brits are losing money as £660billion in savings sits in accounts that do not keep up with inflation. Over 67million accounts pay 3.5 per cent or less, while inflation rose to 3.6 per cent in June, says savings app Spring. Derek Sprawling, from the firm, said: 'As inflation continues to climb, the real value of people's savings is being steadily eroded. It's time to review where money is held.' Accounts including Cahoot's Sunny Day Saver and Chase's Saver currently offer rates of up to five per cent.
