MTS and BrokerTec add Dutch and Belgian indices to RepoFunds Rate

• Pan-European RFR indices launched in 2012
• MTS and BrokerTec account for average daily repo volumes of €230 billion
• Accurately reflects cost of Repo funding for executed trades on MTS and BrokerTec

MTS, a leading fixed income electronic trading venue that is part of London Stock Exchange Group, and BrokerTec, a NEX Group business which provides electronic trading technology and services for the fixed income market announce today that they are further expanding the RepoFunds Rate (RFR) indices by adding Dutch and Belgian repo indices. The RFR indices were launched in 2012 and include the German, French, Italian, Spanish and pan-European RFR indices.

Each RepoFunds Rate index accurately reflects the specific effective cost of Repo funding for trades executed on MTS and BrokerTec, which between them typically trade volumes of €230 billion per day (single counted).  The Dutch repo market transacts in excess €11billion nominal volume per day on BrokerTec, with an actively traded Specials and General Collateral (GC) market. The Belgian Repo market typically sees volumes in excess of €12 billion a day across Specials and General Collateral baskets.

The RFR indices are calculated and published by NEX Data, a NEX Group business which delivers independent market intelligence and price information for over the counter (OTC) data via a variety of third parties such as Reuters and Bloomberg, as well as via email and FTP sources. Both the Dutch RFR and the Belgian RFR will be available from 16 May 2017.

Both indices provide trade-backed data which is used to measure the effective cost of funding within the Dutch and Belgian markets.

Oliver Clark, Head of Product at MTS said: “We are constantly looking for innovative solutions for clients and the wider market and the further expansion of the RFR indices into The Netherlands and Belgium is another step in providing the kind of information the market needs. These new RFR indices demonstrate that the Repo markets are an important indicator of cost of funding in local markets.”

John Edwards, Managing Director for BrokerTec Europe, said: “The launch of both the Dutch and Belgian RepoFunds Rate complements the existing suite of RFR’s with both markets historically being significant in their contribution to the overall Pan Euro RFR. This launch follows the Spanish RFR rolled out in September 2016 and continues to illustrate the level of interest and value now given to the funding facilitated through the use of the secured Repo markets.”

More information about RepoFunds Rate including historical data and calculation methodology is available at www.repofundsrate.com.

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About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.

The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.

Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg. 

LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.

Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.

Further information on London Stock Exchange Group can be found at www.lseg.com