Euroclear, the international central securities depository, has begun work with the Government Securities Clearing Corporation (GSCC) to develop netting services for repo and cash trades for euro-denominated sovereign debt securities.
Initially the proposed services under development would include trade capture, comparison, novation, netting, risk management and reporting, although coverage of other securities and currencies might follow. Establishing a multilateral netting system would result in a single, common counterparty for each Euroclear participant’s trades, thus reducing counterparty risk and the volume of cash and securities transactions.
GSCC is a market-owned entity in the US, providing trade comparison, netting and risk management services in the US government securities market. Last year it processed over $200 trn in securities transactions, of which more than $130trn was in repos.

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