Euronext strengthens European fixed-income markets with streamlined government bond settlement

Euronext announced that Euronext Securities Milan will open settlement for all European government debts cleared by LCH SA, marking a significant step in its fixed-income strategy. This initiative aligns capabilities across MTS, Euronext Clearing, and Euronext Securities, strengthening Euronext’s position in the European government bond market. Traditionally fragmented across multiple CSDs, European government bond settlement will now utilize the Eurosystem’s TARGET2-Securities (T2S) platform, offering a unified and efficient model.

Clients will benefit from balance sheet netting, optimized cash management, lower capital consumption, and advanced T2S features like auto-collateralization. The service is currently available for bonds from Italy, France, the Netherlands, Belgium, Germany, Spain, and Austria, and will expand to include all debts cleared by LCH SA. This development demonstrates Euronext’s commitment to a harmonized, scalable, and cost-effective infrastructure for the European fixed-income community.

According to Pierre Davoust, Head of Euronext Securities, the initiative provides solutions for capital efficiency, cost reduction, and regulatory alignment. It complements Euronext’s Repo Expansion initiative and Euronext Securities European Offering, allowing clients to manage all asset classes through a single entry point.

(Source：Euronext Markets)