Euroclear today announced that it has launched a US Treasury Delivery-Versus-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 triparty repo transactions. It optimises DVP repo settlement via FedWire Securities Services, thereby delivering economic benefits through reduced operational and intraday 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 in to 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…
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