Euroclear and LCH SA are expanding their partnership to give clearing members greater flexibility in settling Italian government securities.
Under the initiative, participants will be able to settle all Italian government debt traded on MTS and BrokerTec, and cleared through LCH SA, at Euroclear Bank, the international central securities depository (ICSD) of the Euroclear Group.
The service, expected to launch in 2026, is designed to support more efficient balance sheet management and improve operational processes for market participants.
By allowing settlement through Euroclear Bank, users will be able to consolidate activity across a broader network of euro-denominated securities, potentially reducing fragmentation in the post-trade chain.
Sébastien Danloy, chief business officer at Euroclear group, said: “We are extremely proud to bring this expanded solution to the market together with LCH. Given that Italian government debt represents a major segment of the European fixed income market, this represents an important milestone in our vision of advancing the Savings and Investments Union. This is centred around greater choice, open access models and the continued development of a resilient, interconnected European capital market.”
The move also enables Italian government debt to be mobilised within Euroclear’s Collateral Highway, facilitating greater use of the assets in securities financing and funding transactions.
The initiative forms part of a broader trend toward deeper post-trade integration in Europe, as infrastructure providers look to enhance cross-border efficiency and promote open access across capital markets.
Michel Semaan, global head of RepoClear at LSEG, said: “As a leading provider of clearing services for Italian government debt, we are delighted to be working with Euroclear to bring even greater efficiencies and choice to our members, both key elements of a competitive European capital market.”