BNY Mellon has selected Eurex as the first clearing house to centrally clear repo trades in Europe, having already executed the first of these transactions.
Eurex’s offering allows clients to trade repos with more than 160 registered participants and allows participants to raise or place cash against over 13,000 securities, both domestic and international.
Björn Storim, chief executive of BNY Mellon’s European bank, said: “The demand for European repo is continuously increasing and this important milestone supports us in expanding our business and risk management capabilities in Europe.
“We are pleased to become a trading and clearing member at Eurex. Access to Eurex enhances our overall liquidity management tool kit.”
In an announcement, Eurex confirmed that it had seen a significant increase in trading activities and reached record volumes in its cleared repo markets – doubling across all markets year on year as of last month.
The onboarding of BNY Mellon is the latest milestone for Eurex, having also welcomed State Street earlier this year, becoming the first clearing house outside of the US to trade and centrally clear repo transactions.
Frank Gast, member of the management board of Eurex Repo highlighted the huge opportunities the European repo market holds. “Eurex is excited to support BNY Mellon with our centrally cleared and innovative offerings. We welcome BNY Mellon as a trading and clearing member of Eurex Repo and Eurex Clearing,” he said.