Joint initiative to introduce a cleared term delivery-by-value service

Euroclear UK & Ireland Ltd. and LCH.Clearnet Ltd, together with the London Money Market Association and gilt repo market participants, are working on a joint initiative to introduce and adopt a new service to centrally clear and settle sterling general collateral repo trades on a term basis.
Published on 24 January 2013

The new service will be based on LCH.Clearnet’s existing RepoClear Sterling GC product but will settle at EUI using its term delivery-by-value (DBV) product4. Settlement of RepoClear Sterling GC trades of any term is currently conducted daily on an overnight basis via ‘rolling’ DBV transactions at EUI. The new service will align settlement with the underlying maturity of GC transactions. This will reduce daily sterling GC repo market settlement volumes and values and, hence, operational and liquidity risks in the gilt repo market.

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