On Monday 7 October, the European Commission launched the EU Repurchase Agreement (Repo) Facility, a new mechanism for issuing short-term securities available on demand to primary dealers in the EU. This initiative aims to strengthen the role of European bonds and improve the efficiency and fluidity of the EU securities market.
The launch of this repurchase facility comes at a time when the secondary market for European bonds is booming, marking a key milestone for the Commission as it becomes a sovereign issuer on the European capital markets.
“Through the facility, the EU offers its primary dealers the possibility to source specific EU bonds on a temporary basis, supporting their capacity to post firm public quotes. The facility allows investors to be more confident in the terms on which they can trade EU bonds in the secondary market”, the Commission said on Monday.
The first transactions were due to be executed on Monday on the ‘Eurex Repo’ system and cleared via ‘Eurex Clearing’, the Commission said. (Original version in French by Bernard Denuit)