Sponsored Access for repo clearing

Make your choice of clearing house an informed one, not a default.

Your route into cleared repo shapes how you fund margin, use collateral and organise your sponsoring relationships.

Before committing to a model, understand your options.
Understand your options

What could an informed choice mean for your business?

If cleared repo is becoming part of your activity as a buyside firm, your choice of clearing house deserves a place in that conversation.  How you assess margin requirements, use your collateral and manage your obligations - and what your firm takes on operationally - matters.

With on-demand margin simulations, the flexibility to meet overnight and intraday margin requirements entirely with eligible securities, and no mandatory back-up agent, Euronext's sponsored access model has been designed to support informed decisions and greater collateral flexibility.      

 

Why consider Euronext Clearing's Sponsored Access model?

Euronext Clearing’s Sponsored Access model for repo gives eligible buy-side firms a direct contractual relationship with the central counterparty (CCP) for their repo transactions, through a Sponsoring Agent (SA), without taking on every responsibility of a full clearing member.

Access to repo liquidity helps your firm manage securities positions in support of its investment strategies. Sponsored Access offers a direct route to centrally cleared repo, with the flexibility to meet 100% of overnight and intraday margin requirements using eligible securities — reducing the need to source cash.

Your firm meets its own margin obligations, while a Sponsoring Agent (SA) contributes to the default fund and performs defined default-management responsibilities.

How the direct model works

Your firm becomes a Sponsored Member (SM) and contracts directly with Euronext Clearing, the central counterparty to your repo transactions. 

Your SA supports your participation and oversees the exposure it sponsors. It contributes to the default fund and takes on defined default-management responsibilities; which is what allows your firm to face the CCP directly without full clearing membership.

sponsored access for repo clearing

Innovation that makes a difference to your firm

Simulate margin and collateral on demand

Innovation

Run on-demand margin and collateral simulations to assess expected requirements and inform your collateral planning. This helps you prepare for anticipated needs and reduce reliance on excessive surpluses.

Meet 100% of margin requirements with securities

Key benefit

Use eligible non-cash securities to cover both overnight and intraday margin requirements. This reduces the need to convert bond holdings into cash and supports greater collateral and capital efficiency.

No mandatory back-up agent

Innovation

Unlike other models in the market, there is no obligation to appoint a back-up agent ; simplifying the sponsoring relationships you need to establish and maintain.

How the model supports your sponsoring relationship

Your sponsor needs to manage the risks and resources associated with supporting your activity. Euronext Clearing's model includes features designed to support that relationship.

Together, these features support sponsors in serving a broader range of buy-side clients, managing exposures and using balance sheet resources efficiently.

No additional sponsor buffers

Innovation

The model imposes no additional Sponsored Access buffer requirements on the agent, reducing the associated balance sheet burden and supporting the economics of providing the service.

Real-time exposure control

Innovation

Your sponsor can manage initial margin limits at portfolio level in real time, supporting its risk teams when onboarding your firm and overseeing its activity.

First look and conditional last look

Default management

If an SM defaults, its agent has the option to bid on the portfolio at the start of the CCP's default-management process. For an indemnified SM, the agent may also receive a last look to help manage its indemnity.

Who is Sponsored Access designed for?

The model is likely to suit your firm if it:
•    Actively participates in European repo markets.
•    Wants to manage margin and settlement directly with the CCP.
•    Wants to meet 100% of overnight and intraday margin requirements with securities, reducing the need to source cash.
•    Wants better visibility of expected margin requirements to plan collateral postings.
•    Wants simpler sponsoring arrangements, without a mandatory back-up agent.

Make your choice of clearing house an informed one, not a default.

Cleared repo is becoming part of your activity as a buy-side firm, and the choice of your clearing house deserves a place in that conversation. How you assess margin requirements, use your collateral and manage your obligations — and what your firm takes on operationally — matters.

Let's talk

Resources

Repo Clearing

Learn about Euronext Clearing's broader repo and cash bond clearing proposition. 

Repo Clearing

Sponsored Access: clearing the path for the buy side

Explore the rationale behind the Sponsored Access model and how responsibilities are divided. 

Read article

Repo Clearing news and insights

Follow developments in Euronext's repo clearing expansion

Clearing news

Rules & Regulations

Access the applicable Euronext Clearing regulations and instructions. 

Clearing rules

The model you choose does not remove your firm’s responsibility for its repo and margin obligations. Discuss eligibility, contractual terms and the implications of each model with Euronext Clearing, your SA and your legal team. The precise requirements and implementation steps depend on your chosen model and operating arrangements. Participation, model eligibility and collateral acceptance are subject to applicable rules and contractual requirements. Simulations provide estimates; actual requirements may change.