Euro brings new efficiencies to the repo market.

Financial News, May, 2003

Byline: Natasha de Teran

The more optimistic players in the eurozone repo markets might well have expected that the arrival of the single currency on January 1, 1999 would lead to a single euro repo market. If so, they will have been sorely disappointed.More than four years after the euro's introduction, repo dealers still face myriad obstacles when trading: fiscal treatments, delivery mechanisms, legal frameworks and clearing and settlement methods still vary between countries.

Yet far from put off by the seemingly interminable development of a single market, repo players are more than pleased with the developments.

Drew Lubin, head of European repo and global head of money market derivatives at Deutsche Bank, says: "Overall, the euro's...

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