Euronext streamlines bond settlement
15 December 2025 Europe
Image: suldev/stock.adobe.com
The firm’s TARGET2-Securities based model provides users with increased settlement options and improved efficiency across boarders
Euronext Securities Milan has asked LCH SA for the opening of settlement of all European government debts currently cleared by the central counterparty (CCP).
The firm says this highlights progress in Euronext’s fixed income strategy by aligning capabilities across MTS, Euronext Clearing, and Euronext Securities.
By combining trading experience, clearing services, and a settlement environment fully aligned with TARGET2-Securities (T2S), Euronext says it continues to strengthen its position as a central marketplace for European government bonds.
T2S provides real-time delivery versus payment in central bank money, a single set of functionalities, and high operational resilience, enabling seamless movement of euro-denominated securities across borders.
Users will receive balance sheet netting, optimised cash and liquidity management, lower capital consumption, and T2S features such as auto-collateralisation.
Using the platform allows government bonds to be settled in the T2S environment, promoting transparency and efficiency, while reducing operational risk across European fixed income markets.
The service is currently available for Italian, French, Dutch, Belgian, German, Spanish, and Austrian government bonds cleared at Euronext Clearing.
It will be extended to all European government debts currently cleared by LCH SA, allowing settlement of this government bond activity directly in Euronext Securities.
Pierre Davoust, head of Euronext Securities, states: “Firms in the fixed income market are looking for real solutions that support capital efficiency, reduce costs, simplify operations, and align with evolving regulatory requirements.
“With this initiative, Euronext establishes a truly European settlement model for fixed income markets, building on TARGET2-Securities, Europe’s common settlement platform.
“This complements both our ambitious repo expansion initiative — positioning Euronext as a leading CCP for European repo markets — and our Euronext Securities European Offering for equities and ETFs.
“Clients will be able to manage all their asset classes through a single point of entry, gaining the benefits of scale, choice and operational simplicity.”
Euronext Securities Milan has asked LCH SA for the opening of settlement of all European government debts currently cleared by the central counterparty (CCP).
The firm says this highlights progress in Euronext’s fixed income strategy by aligning capabilities across MTS, Euronext Clearing, and Euronext Securities.
By combining trading experience, clearing services, and a settlement environment fully aligned with TARGET2-Securities (T2S), Euronext says it continues to strengthen its position as a central marketplace for European government bonds.
T2S provides real-time delivery versus payment in central bank money, a single set of functionalities, and high operational resilience, enabling seamless movement of euro-denominated securities across borders.
Users will receive balance sheet netting, optimised cash and liquidity management, lower capital consumption, and T2S features such as auto-collateralisation.
Using the platform allows government bonds to be settled in the T2S environment, promoting transparency and efficiency, while reducing operational risk across European fixed income markets.
The service is currently available for Italian, French, Dutch, Belgian, German, Spanish, and Austrian government bonds cleared at Euronext Clearing.
It will be extended to all European government debts currently cleared by LCH SA, allowing settlement of this government bond activity directly in Euronext Securities.
Pierre Davoust, head of Euronext Securities, states: “Firms in the fixed income market are looking for real solutions that support capital efficiency, reduce costs, simplify operations, and align with evolving regulatory requirements.
“With this initiative, Euronext establishes a truly European settlement model for fixed income markets, building on TARGET2-Securities, Europe’s common settlement platform.
“This complements both our ambitious repo expansion initiative — positioning Euronext as a leading CCP for European repo markets — and our Euronext Securities European Offering for equities and ETFs.
“Clients will be able to manage all their asset classes through a single point of entry, gaining the benefits of scale, choice and operational simplicity.”
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