The application is the formal start of the launch process of a central clearing and settlement service for overnight equity securities financing.
Buy-side firms using RepoClear will now have direct access to clearing across 13 Euro debt markets and LCH’s basket repo clearing service, €GCPlus.
According to Eurex, giving a greater range of market participants direct clearing house access will deliver tangible efficiencies to their repo operations.
All post-trade derivatives operations at BNP Paribas including reconciliation and post-trade processing will be managed by FIS under 10-year agreement.
As part of the launch, BNP Paribas Securities Services has become a direct participant in the Chilean CSD, Depósito Central de Valores.
The move will enable its institutional investor clients to invest in a wider variety of short-end investment products that they would not previously had access too.
The hire comes at a crucial time for the exchange group as it looks to implement and roll out a number of key post-trade initiatives.
Pressures from COVID-19, regulations and changing geopolitical market trends, as well as low volumes, have forced Eurex to prioritise other activities.
The move could provide significant savings for banks that have faced increased regulatory costs to trade in the balance sheet-intensive repo market.