Euroclear has launched a US Treasury Delivery Versus Payment (DVP) service for market participants operating in the US and settling USD transactions.
The first trade was completed on 6 February 2025 between Euroclear Bank and Toronto Dominion Bank London.
“The service was developed with significant input from market participants and their custodians and will deliver the improved financial returns and diversification that these market participants seek,” said Olivier Grimonpont, Euroclear’s global head of market liquidity.
The service provides cash lenders with operational efficiency in DVP repo transactions comparable to triparty repo.
It optimises settlement through Fedwire Securities Services, reducing operational and intraday liquidity costs, while holding collateral in segregated accounts with the lender’s chosen custodian.
Electronic trading workflows are fully integrated, supporting seamless collateral allocation, as well as voice-only and voice-assisted trades.
Euroclear has partnered with Matrix Applications, using its TradeBlazer technology to support collateral management compliance and the full repo trade lifecycle within the new solution.
Sinéad McIntosh, managing director for financial institutions servicing at Brown Brothers Harriman, said: “A key objective of our strategy for financial institutions is to share our technology to deliver more effective operating models and enable product expansion.”
It has also deployed BBH infomediary data solutions to enable data integration and custodian communications via SWIFT.
