Euroclear to end gilt DBV service in October
08 April 2016 Brussels
Image: Shutterstock
Euroclear UK & Ireland will decommission its legacy gilt overnight delivery by value (DBV) product within its CREST platform on 3 October.
This decision follows discussions within the Money Market Liaison Committee’s Term DBV sub-committee, a joint initiative between the Bank of England, the London Money Market Association and Euroclear.
The sub-committee works to facilitate the migration of remaining bilateral DBV business among market participants to the Term DBV product.
As a consequence of the cleared market moving to the Term DBV mechanism last year, the majority of the bilateral gilt repo market has also migrated to Term DBV, stated Euroclear in a statement.
The sub-committee has confirmed that it will monitor industry progress and will continue to review whether 3 October is the most appropriate date for Euroclear to decommission the legacy gilt overnight DBV product, based on industry readiness in the run up to this date.
Euroclear in turn has reassured the market it can support a change to the decommissioning date if necessary.
This decision follows discussions within the Money Market Liaison Committee’s Term DBV sub-committee, a joint initiative between the Bank of England, the London Money Market Association and Euroclear.
The sub-committee works to facilitate the migration of remaining bilateral DBV business among market participants to the Term DBV product.
As a consequence of the cleared market moving to the Term DBV mechanism last year, the majority of the bilateral gilt repo market has also migrated to Term DBV, stated Euroclear in a statement.
The sub-committee has confirmed that it will monitor industry progress and will continue to review whether 3 October is the most appropriate date for Euroclear to decommission the legacy gilt overnight DBV product, based on industry readiness in the run up to this date.
Euroclear in turn has reassured the market it can support a change to the decommissioning date if necessary.
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