LSF becomes Euroclear direct member
13 May 2025 UK
Image: Emre_Akkoyun/stock.adobe.com
The Liquidity and Sustainability Facility (LSF) has become a direct member of Euroclear, following approval from the bank鈥檚 admissions committee.
According to the LSF, the move marks a milestone for its mission to enhance liquidity in African sovereign bond markets.
As a direct member, the LSF will gain access to Euroclear鈥檚 global network of over 2,000 financial institutions, and benefit from the company鈥檚 global expertise as a triparty agent in the realm of collateral management for large institutional repo transactions.
The triparty set up enhances liquidity management through optimisation of collateral assets, while providing robust risk mitigation through independent valuation, automated margin calls, and comprehensive settlement services, says the LSF.
Bernard Ferran, chief commercial officer, at Euroclear comments: 鈥淲e are delighted to welcome the Liquidity and Sustainability Facility to our global ecosystem. As a leading international central securities depository in the Eurobond market, this strategic alliance with LSF is a natural fit.鈥�
In addition to the new membership, the LSF has defined for Euroclear a standardised Africa general collateral triparty repo basket, featuring 176 African sovereign and corporate international bonds.
The basket is designed to centralise liquidity within this asset class and enable investors to execute triparty repo transactions on this basket, which the LSF says can be tailored to their requirements, in a high-quality and liquid environment.
David Escoffier, CEO of the LSF Secretariat, adds: 鈥淓uroclear stands as a key player in African sovereign eurobonds repo transactions, which is precisely the LSF's focus.
鈥淭he standardised processes and connectivity options Euroclear offers provide us with a significant competitive advantage in today's interconnected global financial markets.鈥�
According to the LSF, the move marks a milestone for its mission to enhance liquidity in African sovereign bond markets.
As a direct member, the LSF will gain access to Euroclear鈥檚 global network of over 2,000 financial institutions, and benefit from the company鈥檚 global expertise as a triparty agent in the realm of collateral management for large institutional repo transactions.
The triparty set up enhances liquidity management through optimisation of collateral assets, while providing robust risk mitigation through independent valuation, automated margin calls, and comprehensive settlement services, says the LSF.
Bernard Ferran, chief commercial officer, at Euroclear comments: 鈥淲e are delighted to welcome the Liquidity and Sustainability Facility to our global ecosystem. As a leading international central securities depository in the Eurobond market, this strategic alliance with LSF is a natural fit.鈥�
In addition to the new membership, the LSF has defined for Euroclear a standardised Africa general collateral triparty repo basket, featuring 176 African sovereign and corporate international bonds.
The basket is designed to centralise liquidity within this asset class and enable investors to execute triparty repo transactions on this basket, which the LSF says can be tailored to their requirements, in a high-quality and liquid environment.
David Escoffier, CEO of the LSF Secretariat, adds: 鈥淓uroclear stands as a key player in African sovereign eurobonds repo transactions, which is precisely the LSF's focus.
鈥淭he standardised processes and connectivity options Euroclear offers provide us with a significant competitive advantage in today's interconnected global financial markets.鈥�
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