November 29, 2017 / 10:55 AM / a year ago

LCH adds Belgian debt to repo clearing

LONDON, Nov 29 (IFR) - LCH has extended its repo clearing service to include Belgian government debt - part of an ongoing effort to enhance netting opportunities against existing cleared repo activities on the RepoClear platform.

Belfius Bank and KBC Bank were among the first members to clear cash and repo trades on Belgian government bonds at the clearing group’s Paris arm, LCH SA.

The service covers debt instruments that are settled through pan-European settlement platform Target2 Securities. The final wave of migration to T2S took place in September, when Baltic central securities depositories and Spain’s Iberclear began settling transactions on the platform.

“We’re committed to providing our members with choice and ensuring that they are able to realise the maximum benefits of clearing,” said Christophe Hemon, CEO of LCH SA. “T2S provides the market with a great opportunity for improved efficiency, and this initiative ties in well with the aims of that project.”

The development comes eight months after the eurozone-focused platform was extended to include German government securities. French, Italian and Spanish government securities can also be cleared via the Paris entity.

Belgian government debt will also continue to be cleared on the London-based RepoClear platform, offering netting against repo trades on government securities from Germany, the UK, Austria and Scandinavia.

“Having a choice of clearing venues is important to us,” Jeffrey Van Impe, head of repo at Belfius Bank, said in a statement. “We believe T2S and similar initiatives will play an important role in improving netting and efficiencies in the European bond market.” (Reporting by Helen Bartholomew)

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