Euroclear today announced a major expansion of its partnership with LCH SA, aimed at streamlining the settlement of Italian government debt traded on MTS and BrokerTec and cleared through LCH SA. Under the enhanced agreement, clearing members will be able to settle both cash and repo transactions directly at Euroclear Bank, the International Central Securities Depository (ICSD) of the Euroclear group. The service is going to launch in 2026.

This initiative represents a significant step in further integrating Europe’s post-trade ecosystem. By enabling settlement through Euroclear Bank, market participants will benefit from improved balance sheet netting and greater operational efficiency. The model is here to reduce market fragmentation, enhance collateral mobility, and reinforce the principles of open infrastructure and client choice, while providing access to a broader and more efficient network for euro-denominated securities.

Euroclear & LCH SA Partnership to Streamline Italian Government

A key advantage of this development is that it will allow Italian government debt to be mobilized onto Euroclear’s Collateral Highway, unlocking new opportunities for securities financing and funding. This will provide market participants with more flexibility and streamlined processes in managing collateral across Europe.

Michel Semaan, Global Head of RepoClear at LSEG, said: “As a leading provider of clearing services for Italian government debt, we are happy to be working with Euroclear to bring even greater efficiencies and choice to our members, both key elements of a competitive European capital market.”

Sebastien Danloy, Chief Business Officer of Euroclear Group, added: “We are extremely proud to bring this expanded solution to the market together with LCH. Italian government debt represents a major segment of the European fixed income market, and this milestone aligns with our vision of advancing the Savings and Investments Union. Our focus remains on offering greater choice, open access models, and developing a resilient, interconnected European capital market.”

With this move, Euroclear and LCH SA are further strengthening the infrastructure for euro-denominated securities, offering market participants enhanced efficiency, liquidity, and strategic flexibility as Europe continues to deepen post-trade integration.

Also, stay updated with the Latest Broker News.