BrokerTec Builds On Its Collaboration with LCH RepoClear SA to Integrate Clearing of Euro Denominated Securities for RFQ Trading Solution

May 18, 2023 - Fixed Income trading platform BrokerTec has announced an expansion to its collaboration with LCH RepoClear, to provide an efficient route for clients to clear Euro-denominated securities with LCH through BrokerTec Quote, the dealer-to-client Request for Quote (RFQ) Repo trading solution.

Clients of BrokerTec Quote are now able to seamlessly clear trades in Euro-denominated securities transactions with LCH RepoClear via Sponsored Clearing, creating new opportunities for dealers and clients to trade Euro-denominated Repo with the benefits of a central counterparty. Sponsored Clearing enables buyside market participants to become direct members of LCH RepoClear and clear their transactions with the dealer of their choice via the sponsorship of an Agent.

"We're delighted to further extend our collaboration with LCH to enhance BrokerTec Quote by offering clients new efficiencies in trading Euro-denominated securities," said John Edwards, Global Head of BrokerTec. "This improved functionality for existing and new clients will help further accelerate trading opportunities on BrokerTec Quote, our rapidly growing bilateral, relationship-driven alternative execution service to our market leading central limit order book for Repo transactions."

"We are pleased to expand our partnership with BrokerTec and further extend the LCH RepoClear Sponsored Clearing ecosystem," said Emmanuel Rolland, COO Repoclear, Collateral and Liquidity Management, LCH SA. "With this collaboration, the buyside is able to gain greater access to LCH RepoClear, the largest liquidity pool for cleared Euro-denominated government bonds, whilst banks can benefit from netting opportunities thus alleviating their resource management pressures."

The collaboration between BrokerTec and LCH RepoClear builds on an existing agreement to provide Sponsored Clearing of Gilt Repo on BrokerTec Quote.