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Eurex wins one of the world’s largest pension fund managers for repo clearing

Release date:
24 May 2022
| Eurex Clearing

Eurex wins one of the world’s largest pension fund managers for repo clearing

- As of mid-June 2022, APG Asset Management N.V. will start trading and clearing centrally cleared repos for its clients via ISA Direct
- Eurex’s ISA Direct clearing service aims to broaden direct CCP access for centrally cleared repo and OTC interest rate swaps
- European pension funds with assets under management of more than EUR 1 trillion will then be connected to Eurex’s cleared repo markets

As of mid-June 2022, APG Asset Management N.V. (APG), one of the world’s largest pension fund investment managers, will start accessing Eurex’s centrally cleared repo markets. Eurex offers institutional investors like pension funds direct access to cleared repo markets and derivatives clearing through its ISA Direct clearing services. Including APG, Eurex’s pension fund clients have more than EUR 1 trillion assets under management. They have direct access to Eurex repo markets to address market liquidity concerns as well as regulatory-driven challenges. 

With this direct clearing connection, Eurex offers pension funds, as well as other asset managers such as insurance companies, possibilities to efficiently manage cash and securities collateral. This is especially important considering regulatory changes like Uncleared Margin Rules or the potential clearing obligation for pension funds. 

Through Eurex’s deep liquid and centrally cleared repo markets, APG’s clients can now trade repos with over 150 participants registered with Eurex Repo, including commercial banks, supra nationals, central banks, and government financing agencies. They can invest or raise cash securely and reliably utilizing more than 13,000 ISINs. APG is thus significantly expanding its spectrum of available liquidity providers while minimizing counterparty risk and reducing costs. Eurex offers repo clearing in four currencies: EUR, USD, GBP, and CHF. 

Eurex’s integrated GC Pooling repo market with straight-through processing across trading (Eurex Repo), central clearing (Eurex Clearing) and tri-party settlement (Clearstream) allows for an operationally robust and secure management of cash variation and initial margin requirements.

Jan-Mark van Mill, Head of Treasury and Trading, APG: “The direct link to Eurex’s cleared repo markets is an important enhancement of our collateral and cash management capabilities. Thanks to Eurex’s ISA Direct clearing service, our clients are better prepared for the potentially upcoming derivatives clearing obligation for pension funds.”

Societe Generale Prime Services acts as a clearing agent for APG. Dirk Bellens, Head of Prime Sales Netherlands, Societe Generale: “We are very proud that APG chose Societe Generale as partner to access the cleared repo market. Our continued partnership with Eurex allows clients like APG to access increased liquidity and enhanced credit exposure. This type of innovative solution, partnership and forward thinking continues to demonstrate Societe Generale’s leadership in the clearing space.”

Eurex Clearing’s ISA Direct model is currently offered for repos as well as OTC IRS. Eurex’s Frank Odendall, Head of Securities Financing Product & Business Development: “Onboarding APG funds is the latest successful step in our efforts to open our centrally cleared markets to a greater diversity of market participants. Our ISA Direct model – available for both repos and OTC IRS – offers market participants tangible benefits in terms of risk management and collateral optimization.” 

The proven robustness in market stress situations relative to bilateral repo markets is particularly valuable to buy-side clients, according to Odendall. Due to increasing demand, Eurex will allow further client groups to access cleared repo markets through the new ISA Direct Indemnified model from July onwards.

About Eurex 

Eurex stands for the leading European derivatives exchange and – with Eurex Clearing – one of the leading central counterparties globally. As architects of trusted markets characterized by market liquidity, efficiency, and integrity, we provide our customers with innovative solutions to seamlessly manage risk. 

About APG 

As the largest pension provider in the Netherlands, APG looks after the pensions of 4.8 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately EUR 606 billion (March 2022) in pension assets. With approximately 3,000 employees APG has offices in Heerlen, Amsterdam, Brussels, New York, Hong Kong, Shanghai and Beijing.

About Societe Generale 

Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions. 

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