Euroclear Launches US Treasury DVP Repo Service

Euroclear has announced the launch of its new US Treasury Delivery-Versus-Payment repo service, marking a significant step in strengthening infrastructure for the US Treasury repo market. The company confirmed that Euroclear Bank and Toronto Dominion Bank London completed the first transaction under the new solution on 6 February 2025, thereby demonstrating early market adoption and operational readiness.

The new service targets US Treasury repo market participants operating in the United States and settling transactions in US dollars. Moreover, it enables cash lenders to achieve operational efficiency in DVP repo transactions comparable to triparty repo arrangements. By optimising settlement through Fedwire Securities Services, the platform reduces operational complexity and lowers intraday liquidity costs, thereby delivering tangible economic benefits to users. 

Euroclear Launches US Treasury DVP Repo Service

In addition, the solution holds repo collateral in segregated accounts with the cash lender’s chosen custodian, which enhances security and flexibility. Furthermore, Euroclear integrates electronic trading workflows directly into the service, allowing seamless collateral allocation and streamlined processing for both cash lenders and counterparties. At the same time, the system supports voice-only and voice-assisted trades, ensuring broader market accessibility. The offering also administers both cleared and non-cleared DVP repo transactions, including Fixed Income Clearing Corporation-sponsored DVP repo trades, which provides scalability as regulatory requirements evolve. 

This development becomes particularly relevant as the US Treasury Clearing Mandate approaches implementation in mid-2026. Looking ahead, Euroclear plans to expand the solution to additional markets and currencies. To strengthen the platform’s capabilities, Euroclear has partnered with Matrix Applications, deploying its TradeBlazer technology to manage collateral compliance and oversee repo lifecycle events such as settlements, margining, securities substitutions, and coupon payments. Additionally, the firm has implemented BBH Infomediary Data Solutions from Brown Brothers Harriman to facilitate data integration and custodian communications via SWIFT. 

Olivier Grimonpont, Global Head of Market Liquidity at Euroclear, stated, “Euroclear is proud to bring this innovative service to the US Treasury repo market. Euroclear developed the service with significant input from market participants and their custodians, and it will deliver the improved financial returns and diversification that these market participants seek.” Meanwhile, Sinéad McIntosh of Brown Brothers Harriman said, “We are delighted to partner with Euroclear and actively support them in launching their innovative repo solution.James Tabacchi, President and CEO of Matrix Applications, added, “We feel well-positioned to provide technology-led financial solutions.”

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