Published by Global Banking & Finance Review®
Posted on November 6, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleThe ECB will join Eurex's repo market in 2026, aiming to enhance trade safety by reducing counterparty risk. This move is crucial for euro zone finance.
LONDON (Reuters) -The European Central Bank will join Eurex's centrally-cleared repo market from the first quarter of 2026, the Deutsche Boerse derivatives exchange said on Thursday.
The ECB and national euro zone central banks already lend securities to market participants. The move will shift some of that activity to centrally cleared transactions, which reduce counterparty risk in trades.
Repo markets, where lenders and borrowers exchange cash and collateral -- often high-quality bonds -- in overnight trades, are crucial to the functioning of the financial system.
Activity in the euro zone repo market has risen sharply since the European Central Bank raised rates into positive territory and started reducing its bond holdings. Total outstanding volumes on Eurex's platform are up around 50% since the end of last year.
Other central banks, including Germany's, are already members of Eurex's repo market.
(Reporting by Yoruk Bahceli; Editing by Amanda Cooper)
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability and support the economic policies of the European Union.
A repo market is a financial market where participants engage in repurchase agreements, exchanging cash for securities, typically high-quality bonds, to manage short-term funding needs.
Securities are financial instruments that represent ownership positions in assets (equities), creditor relationships with entities (debt securities), or rights to ownership (derivatives).
A central bank is a national institution that manages a country's currency, money supply, and interest rates, overseeing the banking system and implementing monetary policy.
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