CSDR requires a neutral third-party to act as the buy-in agent, which Eurex STS aims to become through its new banking license.
Representatives from LCH and EuroCCP highlight contradicting trends they are seeing in clearing activity throughout Europe following Brexit.
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
The newly formed Eurex Securities Transactions Services, a subsidiary company of Deutsche Boerse, will offer the buy-in agent service.
BNY said the transaction represents a major new route to market for its securities lending clients without the need to set up direct clearing membership.
Eurex now has 28 participants signed up to the repo partnership programme including JP Morgan, Deutsche Bank and Morgan Stanley.
Citi was the first US bank to offer client swap clearing through Eurex, and eight funds have joined Citi to use the service.
PGGM is the first pension fund manager to centrally clear repos at German exchange group Eurex.