years. however, the euro area repo market can be affected by collateral scarcity and seasonality, especially at the end of the year, considering also the important share of hold - to - maturity investors. in this regard, eurosystem has made available government bond holdings for securities lending since april 2015. the eurosystem securities lending programme has been successfull in helping to normalize market rates and in acting as a backstop facility for market participants. for instance, in april 2021, eur 71. 5 billion of public sector bonds were lent out on average with a breakdown of eur 59. 5 billion against securities and eur 12. 0 billion against cash collateral. another key feature, which has helped to support the liquidity of the euro area repo market, is the dominant share, two - third, of repo market trading cleared via central clearing counterparties ( ccp ), despite the absence of any mandatory clearing on these instruments. consequently, ccps registered record volumes, in march 2020, in some case for more than 15 trillions of euros, reflecting both cash raising transactions but also special collateral borrowing transactions ( notably for french and german securities ), leading for the former to temporary wider rates and for the latter to tighter repo rates. of note also, despite increase in margins demands ( associated with higher volumes ), breaches and fails have also remained very low. the structure of repo clearing in europe, significantly changed since the migration in 2018 – 2019 of all euro - denominated sovereign debt transactions from ccp lch ltd to the paris - based lch sa. with this migration, around 700 billion euros have been transferred to lch sa and hence to an eu - based ccp. today, the european repo clearing sector is largely conducted in two european ccps, lch sa which has a dominant market share and eurex clearing. from a financial stability perspective, this relocation of euro - denominated repos within the euro zone is welcome, in particular given the key role of these instruments, essential for government funding. it ensures that this activity is subject to the stringent requirements set by emir, under the close and integrated supervision of national and european authorities through emir colleges, and shields this important funding market from any potential regulatory divergence or supervisory conflicting interest between uk and eu competent authorities. this successful migration of repo activity could serve as a reference to shape future evolutions on other clearing segments that are systemic to eu ’

or starting with ifis, which would improve the range of high - rated instruments in local currency. from the viewpoint of ifis achieving this objective would be helped by adopting standardised bond documentation and international accounting rules, by lowering transaction costs ( not least through interlinked clearing and settlement systems ) and by developing domestic derivatives markets. 2. promoting domestic derivatives markets developing domestic derivatives markets is a crucial measure to promote liquidity both directly and indirectly through helping to diversify the investor base. derivative markets provide cost - effective ways for institutional investors to structure their portfolios more efficiently and improve their risk management. despite their dynamic growth over recent years, the emes ’ derivatives markets account for no more than 10 % of the total outstanding notional values in global derivatives markets. furthermore, the development of derivatives markets differs remarkably across regions. the trading volumes of exchange - traded and over - the - counter contracts are largest for foreign exchange forwards and swaps and for equity options and futures. trading of these instruments is particularly important in emerging asia, while exchange - based trading of interest derivatives on the whole is lagging somewhat behind and is more important in latin america. to promote the development of derivatives markets, the emes should examine the extent to which regulatory deficits and shortcomings in the market infrastructure may be impeding the evolution of such markets. the g7 countries could assist this process by providing their expertise and supporting technical assistance in this area in close cooperation with the ifis. 3. strengthening the market infrastructure and the legal framework a strong legal and regulatory framework, international competitive clearing and settlement systems, effective credit ratings, and good corporate governance are also key ingredients for the development and efficient functioning of capital markets. despite the remarkable progress that emes have made so far, further reform steps are needed in these areas. let me address these aspects in more detail. first, clearing and settlement systems : capital movements are global but the clearing and settlement of securities is very often country - based. the current setup in many emes in terms of mitigating risks in the settlement process and cost effectiveness is often less than optimal. in addition, clearing and settlement systems are still highly fragmented. however, best practices in this area are well developed in the form of recommendations by the committee on payment and settlement systems ( cpss ), the international organisation of securities commission ( iosco ) and the g 30 action plan towards enhancing the interoperability of settlement systems. thus, the challenge does not lie in determining what goals