BNY Mellon selects Eurex Clearing for repo trades in Europe

BNY Mellon’s onboarding represents another milestone for Eurex’s cleared repo markets, with transactions already having been executed. With Eurex’s deep liquid and centrally cleared repo markets, clients can trade repos with over 160 registered participants. This includes commercial and central banks, government financing agencies, and a broad range of supranational organisations.

Through this, market participants can efficiently and securely raise or place cash against more than 13,000 domestic and international securities. According to BNY Mellon’s officials, by becoming a Trading and Clearing Member of Eurex Repo and Eurex Clearing, the company can enhance its overall liquidity management tool kit. As the demand for European repo is continuously increasing, this supports BNY Mellon in expanding its business and risk management capabilities in Europe.

Considering the current market landscape, TLTRO repayments, and further reduction of excess liquidity, statistics from Eurex show a significant increase in trading activities and reaching new record volumes in its cleared repo markets.

According to Eurex, the total traded repo volume across all markets doubled from January to August 2023 compared to the same period in 2022. GC Pooling, which integrated electronic trading, central clearing, and triparty settlement for standardised secured funding, rose by 270%, while the repo market increased by approximately 30%. Average Daily Term-adjusted trading volume also increased considerably, reaching approximately EUR 340 billion. 

The Bank of New York Mellon Corporation (BNY Mellon) is a financial services company currently operating in Asia Pacific, Europe, the Middle East, and North America. Recently, the company partnered with Trustly to launch its Open Banking service Bankify. The solution aims to allow firms to receive customer payments from bank accounts. Bankify integrates BNY Mellon’s transaction payments expertise and solutions with Trustly’s Open Banking capabilities and offerings.

Moreover, in July 2023, Conduent and BNY Mellon leveraged FedNow’s instant payment rail to expand payment solutions. The initial partnership between the two companies started in 2022, its objective being to enable customers to access various payment capabilities through a unified platform named the Digital Integrated Payments Hub.

At the beginning of June 2023, BNY Mellon and MoCaFi entered a collaboration to bring digital payments to unbanked and underbanked communities in the US. The company’s Treasury Service provides federal, state, and local governments, as well as corporate clients, with a digital disbursement payment service that connects individuals without current access to basic financial services through MoCaFi’s offering. Furthermore, the partnership supports BNY Mellon’s commitment to financial inclusion, helping unbanked and underbanked communities in reaching high-quality financial services.

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