Repo markets are evolving from a short-term funding tool into a strategic pillar of fixed income trading. In this 10-minute Trader TV interview, originally published by markets media and across the trader tv network, Yama Darriet, head of OTC and repo expansion at Euronext, discusses the forces driving market growth, remaining pressure points for dealers and buy-sides, and how innovation in central clearing is redefining participation.
— Euronext Trader TV Interview Watch the full interview above.
Key takeaways for market participants
Below we highlight the critical insights from Yama Darriet's discussion with Trader TV. These takeaways address the core challenges facing dealers, asset managers, hedge funds and institutional investors navigating today's evolving repo landscape.
Repo has moved from a tool, to strategic infrastructure
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The repo market has expanded dramatically—up 11% to €30.7 trillion in December 2025 according to the latest ICMA survey, and 25% year-on-year. But this growth is about more than volumes. Institutions now rely on repo as a core component of funding, collateral management and liquidity management across their fixed income operations. For dealers and buy-sides, reliable access to repo liquidity is no longer optional; it is increasingly becoming a competitive necessity.
- Higher interest rates, increased sovereign issuance and elevated volatility are driving sustained demand for repo access
- Institutions are managing balance sheet constraints more actively, making efficient repo access a strategic priority
- The market is maturing from a short-term funding mechanism into a systemic part of fixed income infrastructure
Repo has moved from a tool, to strategic infrastructure
Demand for repo liquidity is robust, but dealers face significant headwinds. Leverage ratios, capital requirements and the cost of balance sheet usage constrain their ability to meet growing client demand. Central clearing offers a structural solution by enabling netting efficiencies and risk transfer, but access must be designed for the full spectrum of market participants—from hedge funds to asset managers to pension funds.
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Buy-Side Access Must Become Easier and More Scalable
Traditional sponsored access models work, but they often come with substantial legal documentation, operational complexity and cost burdens. The next generation of access must serve the diverse needs of hedge funds (using repo for relative-value strategies), asset managers (funding and collateral management) and dealers (serving clients while managing their own exposures)—all without creating disproportionate friction.
MARKET CONSENSUS - 96% of respondents actually think that a sponsored access model is one of the key tools to get access to repo clearing. — From Euronext research with market participants
This overwhelming consensus shows that buy-side participants recognise the value of clearing—they simply need it delivered in a way that is operationally lean, legally straightforward and economically transparent. Models that offer flexibility while reducing onboarding burden will define the next phase of market participation.
Margin Transparency is now a commercial priority
Margin requirements directly influence where firms clear, how much liquidity they hold, and how efficiently they can deploy collateral. Yet many participants still struggle to predict margin calls or compare clearing strategies across venues. Greater transparency, more granular margin analytics and access to risk model details can help firms optimize collateral allocation and make better pre-trade decisions.
- Margin predictability allows firms to optimize collateral allocation and reduce unnecessary liquidity buffers
- Better margin analytics enable pre-trade cost assessment and clearing venue comparison
- Transparent risk models help participants understand the economics of clearing before execution
Competition and choice drive better market infrastructure
As firms increasingly consider clearing at multiple venues, competition becomes a powerful driver of innovation. Participants are evaluating clearing houses not just on fees, but on liquidity access, margin efficiency, collateral flexibility, settlement options, operational resilience and quality of analytics. A competitive clearing landscape encourages infrastructure providers to respond to the practical needs of the market.
Connectivity and automation will define the next phase
The transition to T+1 settlement in Europe (October 2027) fundamentally changes the timing pressures. The window between trading and final settlement shrinks to near-zero. This means funding, clearing, collateral management and settlement must operate as a connected workflow, not discrete steps. Automation alone will not solve this—seamless connectivity across the entire fixed income value chain is essential.
TIMELINE IMPLICATION - With T+1 go live in October 27, funding, clearing, collateral management, settlement will need to be fast and accelerated by default, and not anymore as an exception.
Manual interventions and disconnected workflows between trading platforms, clearing houses and settlement systems will become operationally unsustainable. Infrastructure providers that can deliver seamless end-to-end connectivity—from trading through clearing to settlement and custody—will become strategically important.
The opportunity ahead
The next phase of repo market development is not defined by clearing higher volumes. It is defined by making access easier, margins more predictable, and the entire fixed income workflow—from execution through to settlement—more efficient. For dealers, this means serving more client types without excessive balance sheet pressure. For buy-sides, this means operating in a more transparent, operationally lean, cost-effective clearing environment. For infrastructure providers, this means building systems that connect every stage of the value chain seamlessly