Euronext’s Italian settlement system – Euronext Securities Milan – has asked to handle the settlement of all European government debts currently cleared by LCH SA.
The offering would make use of Eurosystem’s pan-European settlement platform, (TARGET2-Securities (T2S)), providing a unified and capital-efficient European settlement model spanning all European government bond debts currently under LCH SA’s clearing umbrella.
Specifically, the newly streamlined model aims to enhance European fixed income market consolidation in a harmonised T2S environment and provide clients with improved flexibility and control over post-trade workflows.
Pierre Davoust, head of Euronext Securities, said: “Firms in the fixed income market are looking for real solutions that support capital efficiency, reduce costs, simplify operations and align with evolving regulatory requirements. With this initiative, Euronext establishes a truly European settlement model for fixed-income markets, building on TARGET2-Securities, Europe’s common settlement platform.”
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Currently, the T2S platform connects central securities depositories (CSDs) for delivery-versus-payment in central bank money, spanning a single set of functionalities, with the aim of enabling the movement of euro-denominated securities across borders.
The addition of all European government debts currently cleared by LCH SA will also complement Euronext Clearing’s current fixed income settlement offering, spanning Italian, French, Dutch, Belgian, German, Spanish and Austrian government bonds.
Davoust added: “This complements both our ambitious repo expansion initiative – positioning Euronext as a leading CCP for European repo markets – and our Euronext Securities European offering for equities and ETFs. Clients will be able to manage all their asset classes through a single point of entry, gaining the benefits of scale, choice and operational simplicity.”
The move aligns with Euronext’s aim to create a pan-European exchange spanning the whole trading lifecycle. In November 2025, the firm announced that it would acquire Athens Stock Exchange (ATHEX) following a successful voluntary share exchange tender offer.
The acquisition will see ATHEX integrating into Euronext’s trading and post-trade technology as a combined group, with a cross-border clearing framework.