The European Central Bank (ECB) will begin participating in Deutsche Boerse’s Eurex centrally-cleared repo market starting in the first quarter of 2026, marking a significant milestone in the evolution of European financial infrastructure.

The announcement, made on Thursday by Eurex — the derivatives exchange operated by Deutsche Boerse — signals a major shift in how the ECB and other euro zone central banks handle securities lending. While central banks already lend securities to market participants, the move to centrally-cleared repo transactions is expected to significantly reduce counterparty risk, enhancing market stability.

Repo markets — where cash and high-quality collateral are exchanged, often overnight — are crucial for liquidity and risk management in the global financial system. The euro zone repo market has seen notable growth in recent months amid rising interest rates and the ECB’s reduction of bond holdings. According to Eurex, outstanding repo volumes on its platform have surged by around 50% since the end of 2024.

Germany’s central bank and other national institutions are already engaged in Eurex’s repo platform, and the ECB’s inclusion further consolidates the clearinghouse’s role in European financial markets.