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Clearnet's Bond And Repo Clearing Service Comes Of Age

Date 23/07/2002

Clearnet, the pan-European Clearing House, announces significant new developments and business turnover in its rapidly expanding bond and repo clearing services.

Initially established in November 1998 to clear French primary dealer fixed income business, the Clearnet bond and repo clearing service, the first of its kind in Europe, provides traditional central counterparty services (CCP) to the Over-The-Counter (OTC) wholesale cash debt and related repo markets.

Traded volumes in both cash and repo have seen exponential growth in recent months. Specifically, in 2001 Clearnet reported a total cleared volume, on bond and repo clearing, in the region of 100% increase over the previous year. In the first six months of 2002 this positive growth trend has accelerated with the cleared volumes being some 400% greater than the same period in 2001.

This increase in turnover is thought to be due to a number of historical developments;

  1. Products - Since inception, other instruments such as German, Dutch and Portuguese Government debt and repo, floating rate Eonia repo, euro-denominated French Pfandbriefe, CADES and Same Day Repo have been added to the product offering. Other instruments and functionalities scheduled for introduction this year include Italian and Belgian bond and repo, corporate debt and collateral substitutions.
  2. Markets -The range of bond and repo trading platforms linking to Clearnet now includes Brokertec, MTS France, EuroMTS, Viel Prominnofi and e-Speed with a number of other bond and repo platforms in discussion with Clearnet to provide CCP services to their customers.
Furthermore, following an agreement between Clearnet, MTS S.p.A. and Cassa di Compensazione e Garanzia (CC&G), Italian fixed income products will be centrally cleared at Clearnet and CC&G in Q4 2002. This leads Clearnet to believe that this growth trend is set to continue into the future and demonstrates our commitment to continue providing and developing a value-added service to our customers.