Denmark central bank signs on with Eurex for repo clearing

  • Danmarks Nationalbank joins Eurex for centrally cleared repo transactions as fifth central bank
  • Onboarding of the first Nordic central bank is another milestone for Eurex’s cleared repo markets

Eurex announced that Danmarks Nationalbank is now actively trading and centrally clearing repo transactions at Eurex. It is the first Nordic central bank among over 160 counterparties registered with Eurex’s repo markets. For more than 20 years, Eurex has enabled its clients to efficiently and securely raise or place cash in four currencies against more than 13,000 domestic and international securities.

Apart from commercial banks and most recently buy-side entities, Eurex has developed a strong membership base across European public sector entities. Danmarks Nationalbank is already the second central bank outside the euro area to join Eurex and overall, the fifth central bank connected to Eurex for repo so far.

Martin Wagner Toftdahl, head of Banking and Markets at Danmarks Nationalbank, said in a statement: “Joining centrally cleared repo markets is an important milestone in our reserve management. First and foremost, centrally cleared repo transactions are perfectly in line with our aim of having broad market access and ensuring efficient management across products. Having access to liquid markets for cleared repos will further strengthen our ability to achieve underlying demand for our euro liquidity.”

Matthias Graulich, member of the Executive Board at Eurex Clearing, said in a statement: “We welcome Danmarks Nationalbank as a Eurex Trading and Clearing Member for our repo markets. Eurex is excited to facilitate the needs of Danmarks Nationalbank with our innovative offerings. Our cleared repo markets have proven to be an efficient and reliable source of funding during all times of market events.”

With the current market environment, TLTRO repayments, and further reduction of excess liquidity, Eurex is seeing a significant increase in trading activities and reaching new record volumes in its cleared repo markets. The total traded repo volume on Eurex across all markets has doubled this year (January to August 2023) compared to the same period in 2022.

GC Pooling rose by 270% and the Repo Market by around 30%. Average Daily Term-adjusted trading volume (single counted) also reached record levels of about €340 billion which is an increase of more than 70% compared to same period last year. Looking only at the buy side, total traded repo volume increased 265% year-on-year during the same period.


Related Posts

Previous Post
BIS: repo structural shifts during 2023 banking stresses won’t stave off next shock
Next Post
SCMP: Hong Kong bourse’s liquidity push should not ignore role of seclending

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account