BrokerTec extends relationship with LCH RepoClear to integrate Euro-denominated securities on RFQ trading solution

Collaboration will allow BrokerTec clients to clear Euro-denominated securities transactions with LCH RepoClear via sponsored clearing, offering the benefits of a central counterparty.

CME Group’s fixed income platform BrokerTec has expanded its collaboration with LCH RepoClear to provide an improved route for clearing Euro-denominated securities with LCH.

Clearing will be able to occur with LCH through BrokerTec’s dealer-to-client request for quote (RFQ) repo trading solution BrokerTec Quote.

BrokerTec Quote clients can now clear trades in Euro-denominated securities transactions with LCH RepoClear via sponsored clearing, allowing dealers and clients to trade Euro-denominated repo with a central counterparty.

Sponsored clearing allows buy-side participants to become direct members of LCH RepoClear and to clear their transactions with a chosen dealer through the sponsorship of an agent.

“This improved functionality for existing and new clients will help further accelerate trading opportunities on BrokerTec Quote, our bilateral, relationship-driven alternative execution service to our central limit order book for Repo transactions,” said John Edwards, global head of BrokerTec.

The new collaboration between the two firms builds on an existing agreement to provide sponsored clearing of gilt repo on BrokerTec Quote.

“We are pleased to expand our partnership with BrokerTec and further extend the LCH RepoClear sponsored clearing ecosystem,” said Emmanuel Rolland, COO RepoClear, collateral and liquidity management, LCH SA.

“With this collaboration, the buy-side is able to gain greater access to LCH RepoClear, the largest liquidity pool for cleared Euro-denominated government bonds, whilst banks can benefit from netting opportunities thus alleviating their resource management pressures.”