Euronext streamlines bond settlement

Euronext Securities Milan is collaborating with LCH SA to streamline the settlement of European government debts, aligning capabilities across MTS, Euronext Clearing, and Euronext Securities. This initiative utilizes the TARGET2-Securities (T2S) platform, offering users benefits such as balance sheet netting, optimized cash management, and reduced capital consumption. By settling government bonds within the T2S environment, Euronext aims to increase transparency, efficiency, and reduce operational risk in European fixed income markets.

The service is currently available for government bonds from Italy, France, the Netherlands, Belgium, Germany, Spain, and Austria, and will be expanded to include all European government debts cleared by LCH SA.

Pierre Davoust, head of Euronext Securities, emphasizes that this move provides “real solutions” for firms seeking capital efficiency, cost reduction, and operational simplification, establishing a unified European settlement model for fixed income markets and complementing Euronext’s repo expansion and securities offering.

(Source：Asset Servicing Times)