EUROZONE ISSUANCE: EU Has Announced Repo Facility Launch For October 7

The EU has announced it will launch a repo facility on October 7. It looks like the announcement came yesterday, with wires only picking up on the news today.

• The release notes that “Under the Facility, the EU will offer its Primary Dealers the possibility to source specific EU-Bonds on a temporary basis, supporting their capacity to post firm public quotes. By acting as a backstop to the Primary Dealers’ secondary market activity, the Facility will allow investors to be more confident in the terms on which they can trade EU-Bonds in the secondary market, improving the overall efficiency and fluidity of the EU-Bonds market.”
• “EU repo transactions will be executed on the Eurex Repo web-based trading system and will be cleared via Eurex Clearing as central counterparty (CCP). Deutsche Bundesbank will act as the General Clearing Member (GCM) for the settlement of the transactions.”
• Full release: https://ec.europa.eu/newsroom/budget/items/849939/en