European repo market hits record outstanding value of 鈧�12,435bn for June
28 November 2025 Europe
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New figures have revealed an 11.9 per cent year-on-year growth in the European repo market, with the total value of repo contracts reaching a record high of 鈧�12,435 billion.
The results of the European Repo and Collateral Council (ERCC) survey on the European repo market, represent the value of outstanding repo plus reverse repo on the books of 59 participants at close of business on 11 June 2025.
According to the International Capital Market Association (ICMA), as the report surveys a sample of the European repo market, the headline number must be taken as the minimum size of the European market.
This record figure was driven by financial market volatility and economic uncertainty which was triggered by the shock of hikes in trade tariffs by the US administration.
As a result, this increased demand for precautionary liquidity, but also encouraged investors to seek shelter in the money market, notably in repo, the survey says.
The growth in the survey sample reflected continued strong growth in euro-denominated repos against Italian and other "peripheral" eurozone government bonds, while the shares of repos against French, German, and other 鈥渃ore鈥� government bonds continued to contract.
US Treasuries continued to expand its share, and remain the largest collateral component in the survey. UK gilt and Japanese government bond (JGB) repo also lost share.
The string activity in peripheral eurozone government bonds boosted the shares of the interdealer automatic trading systems (ATS) and also of central counterparty (CCP) clearing, highlighting the close connection between the two, with data from the systems showing that outstanding AST-traded repo reached record size.
The share of triparty repo in the repo books of the survey fell slightly, however the total value of outstanding triparty repo positions for the whole market reached a new record.
There was an across-the-board extension of average residual maturities, with larger shares for positions with two days and one month remaining, in part, reflecting official investors employing term repo for the re-investment of cash balances.
This shift continues the expansion in the share of short-dated repo seen since 2023, the survey reveals.
Regarding net repo positions, the survey sample was a net borrower for one day and a net lender across all other maturities, increasing the degree of maturity transformation provided to the rest of the European repo market.
The share of floating-rate repo recovered, which could suggest that the market is starting to discount the possibility of further central bank rate cuts.
The results of the European Repo and Collateral Council (ERCC) survey on the European repo market, represent the value of outstanding repo plus reverse repo on the books of 59 participants at close of business on 11 June 2025.
According to the International Capital Market Association (ICMA), as the report surveys a sample of the European repo market, the headline number must be taken as the minimum size of the European market.
This record figure was driven by financial market volatility and economic uncertainty which was triggered by the shock of hikes in trade tariffs by the US administration.
As a result, this increased demand for precautionary liquidity, but also encouraged investors to seek shelter in the money market, notably in repo, the survey says.
The growth in the survey sample reflected continued strong growth in euro-denominated repos against Italian and other "peripheral" eurozone government bonds, while the shares of repos against French, German, and other 鈥渃ore鈥� government bonds continued to contract.
US Treasuries continued to expand its share, and remain the largest collateral component in the survey. UK gilt and Japanese government bond (JGB) repo also lost share.
The string activity in peripheral eurozone government bonds boosted the shares of the interdealer automatic trading systems (ATS) and also of central counterparty (CCP) clearing, highlighting the close connection between the two, with data from the systems showing that outstanding AST-traded repo reached record size.
The share of triparty repo in the repo books of the survey fell slightly, however the total value of outstanding triparty repo positions for the whole market reached a new record.
There was an across-the-board extension of average residual maturities, with larger shares for positions with two days and one month remaining, in part, reflecting official investors employing term repo for the re-investment of cash balances.
This shift continues the expansion in the share of short-dated repo seen since 2023, the survey reveals.
Regarding net repo positions, the survey sample was a net borrower for one day and a net lender across all other maturities, increasing the degree of maturity transformation provided to the rest of the European repo market.
The share of floating-rate repo recovered, which could suggest that the market is starting to discount the possibility of further central bank rate cuts.
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