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Triparty repo


The Paris stock exchange is committed in developing new tripartite services for repo in euro. These tripartite services developed by Euroclear France, open to clearing by LCH.Clearnet SA and to Eurosystem repo via the Banque de France will operate on an STP basis from negotiation to deliverable.
This will enable the Paris stock exchange to offer a large range of services dedicated to the management of collateral in euros with five major components:
Transposition of the system “Autoselect”, a tripartite management tool for collateral, to Euroclear France which is already available in Euroclear Bank. This system optimizes the selection and deliverable of securities backed by a collateralised transaction on an automated basis. It applies to all forms of transactions against collateral.
Banque de France adaptation of the Gestion Globale des Garanties (3G) system so as to take on securities delivered via 3G collateral tripartite.
• Development by LCH.Clearnet SA of a unique counterparty service on products traded tripartite. This service will also ensure to process transactions in tripartite on electronic trading platforms ensuring anonymity.
Determination of homogeneous baskets of collateral (credit quality, issuer type ...) that can be used for different operations, thereby facilitating the reallocation of collateral received in tripartite. It includes a basket said Liquidity Coverage Ratio (LCR) and a basket with titles only eligible to refinancing operations of the Eurosystem.
• Expansion of the scope of foreign securities in Euroclear deliverables.
This new service will optimize, automate and streamline the use of collateral against guarantees of any kind. It will help to meet the financial community expectations providing tools for post-trade management adapted to changing needs of risk management and automation of processes generated by the crisis.

Comité de Normalisation Obligataire | 8, rue du Mail 75002 PARIS | tel. 01 42 86 95 47 | Legal notices | Partners : Banque de France - AFTB - ACI

last update 02 June 2020