New York, NY, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Matrix Applications is excited to share Euroclear’s launch of a US Treasury Delivery-vs-Payment (DvP) Repo Service.
The new solution is designed for US Treasury repo market participants operating in the US settling USD transactions. The first trade was completed on 6 February 2025 between Euroclear Bank and Toronto Dominion Bank London.
The service offers cash lenders similar operational efficiency for DvP repo transactions as tri-party repo transactions. It optimizes DvP repo settlement via FedWire Securities Services, and in so doing delivers economic benefits through reduced operational and intra-day liquidity costs. Repo collateral is held in a segregated account with the cash lender’s custodian of choice. Electronic trading workflows on venues are integrated into the new service, making activities such as collateral allocation seamless for cash lenders and their counterparties. Voice only and voice assisted trades are also supported by the solution.
This offering is also designed to administer both cleared and non-cleared DvP repo by cash lenders including FICC DvP sponsored repo trades, giving cash lenders a scalable solution to transact in DvP repo. This is particularly important given upcoming legislation including the US Treasury Clearing Mandate which will be introduced in mid 2026. Euroclear plans to roll out the new solution to other markets and currencies.
Euroclear has partnered with Matrix Applications using its TradeBlazer technology to support the full suite of collateral management compliance and repo trade life-cycle events within the new solution. These include securities settlements, margining, securities substitutions, and coupon payment management. Euroclear has also deployed BBH Infomediary® Data Solutions from Brown Brothers Harriman for data integration and custodian communications, via SWIFT.
“Euroclear is proud to bring this innovative service to the US Treasury Repo market,” said Olivier Grimonpont, Euroclear’s Global Head of Market Liquidity “The service was developed with significant input from market participants and their custodians, and will deliver the improved financial returns and diversification that these market participants seek. This launch plays a key role in our business strategy, delivering leading edge technology to enhance efficiencies for clients through market collaboration.”
“We are delighted to partner with Euroclear by supporting the launch of their innovative repo solution. A key objective of our strategy for financial institutions is to share our technology to deliver more effective operating models and enable product expansion. We are proud that BBH Infomediary Data Solutions is enabling Euroclear to do just that,” said Sinéad McIntosh, Managing Director for Financial Institutions servicing at Brown Brothers Harriman.
James Tabacchi, President and CEO of Matrix Applications added: “We are proud that our company and technology have been chosen by Euroclear for this important service. With Euroclear’s pedigree as an integral part of our financial markets and Matrix’s accomplished systems and software capabilities, we feel well positioned to provide technology-led financial solutions.”
About Euroclear
Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International.
About Brown Brothers Harriman
Brown Brothers Harriman (BBH) is a global financial services firm known for premium service and specialist expertise. We have a 200-year track record helping clients innovate and navigate complex financial markets. Our 6,000 employees support our clients’ investments in over 90 markets from 18 offices globally. As a private partnership, we are uniquely built to put clients first and create success that lasts.
BBH Investor Services is a leading provider of asset servicing and operating model solutions to global asset managers and financial institutions. Our asset servicing solutions include custody, global tax services, depositary and trustee, accounting, administration, transfer agency, foreign exchange, and securities lending. Our operating model solutions solve platform, data, and connectivity challenges across open-architecture operating models. We support our clients’ growth, enhance operational efficiency and resiliency, and streamline reporting and oversight.
About Matrix Applications
Matrix Applications is a New York-based fintech service bureau that offers a suite of collateral management, margining and clearing systems for institutional fixed income trading and equities securities lending. It is a team of capital markets and systems professionals delivering financial technology solutions to institutional firms since 2000. The company works hands-on with its clients to identify an optimal mix of services to best fit their needs, from systems to back-office operations assistance. Matrix Applications is a wholly-owned subsidiary of South Street Securities Holdings, Inc.
Euroclear Media Contacts
Craig MacDonald, +44 (0) 7471 148 319
Jorgen Muylaert, +32 479 77 14 80
Attachment
Colleen Judge Matrix Applications LLC 212-308-8880 colleen.judge@matrixapps.com
