Danmarks Nationalbank Joins Eurex’s Cleared Repo Markets

Danmarks Nationalbank Joins Eurex’s Cleared Repo Markets

(IN BRIEF) Danmarks Nationalbank, the central bank of Denmark, has become the second central bank outside the euro area to actively trade and centrally clear repo transactions at Eurex. Eurex’s cleared repo markets, which currently have over 160 registered participants, offer deep liquidity and enable efficient and secure cash raising or placement in multiple currencies against a wide range of securities. The move by Danmarks Nationalbank aligns with their reserve management objectives, aiming to broaden market access and ensure efficient management across products. Eurex has experienced a significant increase in trading activity and record volumes in its cleared repo markets, with total traded repo volume doubling in the first eight months of 2023 compared to the same period in 2022.

(PRESS RELEASE) FRANKFURT, 22-Sep-2023 — /EuropaWire/ — Danmarks Nationalbank is now actively trading and centrally clearing repo transactions at Eurex. The onboarding of the first Nordic central bank is a major milestone for Eurex’s cleared repo markets.

Over 160 counterparties registered with Eurex’s repo markets

Eurex’s deep liquid and centrally cleared repo markets allow to trade repos with over 160 registered participants. For more than 20 years, Eurex has enabled its clients to efficiently and securely raise or place cash in four currencies against more than 13,000 domestic and international securities. Apart from commercial banks and most recently buy-side entities, Eurex has developed a strong membership base across European public sector entities. Danmarks Nationalbank is already the second central bank outside the euro area to join Eurex and overall, the fifth central bank connected to Eurex for repo so far.

Martin Wagner Toftdahl, Head of Banking and Markets at Danmarks Nationalbank: “Joining centrally cleared repo markets is an important milestone in our reserve management. First and foremost, centrally cleared repo transactions are perfectly in line with our aim of having broad market access and ensuring efficient management across products. Having access to liquid markets for cleared repos will further strengthen our ability to achieve underlying demand for our euro liquidity.”

Matthias Graulich, Member of the Executive Board at Eurex Clearing: “We welcome Danmarks Nationalbank as a Eurex Trading and Clearing Member for our repo markets. Eurex is excited to facilitate the needs of Danmarks Nationalbank with our innovative offerings. Our cleared repo markets have proven to be an efficient and reliable source of funding during all times of market events.”

Significant volume increase in Eurex’s cleared repo markets

With the current market environment, TLTRO repayments, and further reduction of excess liquidity, Eurex is seeing a significant increase in trading activities and reaching new record volumes in its cleared repo markets.

The total traded repo volume on Eurex across all markets has doubled this year (January to August 2023) compared to the same period in 2022. GC Pooling rose by 270 percent and the Repo Market by around 30 percent. Average Daily Term-adjusted trading volume (single counted) also reached record levels of about EUR 340 billion which is an increase of more than 70 percent compared to same period last year. Looking only at the buy side, total traded repo volume increased 265 percent year-on-year during the same period.

About Eurex

Eurex is the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk. For more information, visit www.eurex.com

About Danmarks Nationalbank

Danmarks Nationalbank is the central bank of Denmark. The three main objectives of Danmarks Nationalbank are to ensure safe payments, a stable financial system, and stable prices with the latter supported by a +40 years fixed exchange rate policy. Visit www.nationalbanken.dk to find out more about Danmarks Nationalbank as a workplace, our tasks, organisation, and history, among other topics.

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SOURCE: Deutsche Börse Group