Additionally, already in 2005 Clearstream has experienced rapid growth in the Global Securities Financing services business which includes the combined services for tripartite repo, securities lending and collateral management with the monthly average outstandings reaching EUR 180.7 billion representing a rise of over 55 percent from February 2004 (EUR 116.2 billion).
In the eighth semi-annual survey conducted by the International Securities Market Association (ISMA) on the repo market in Europe, 2004 witnessed a growth rate of 32 percent year on year. The survey conducted on December 8, 2004 was based on the amount of repo business outstanding at that date from 76 participating institutions and showed that the lower boundary figure for the size of the market is now EUR 5 trillion.
There is a growing recognition that the Repo market is regarded as pivotal to other financial markets, particularly those in bonds and derivatives, as it is the main source of financing for dealers. A ‘Repo’ is an agreement which involves the simultaneous sale and repurchase of a security and provides a secure means of lending and an economic means of leverage for borrowers.
Jeffrey Tessler, CEO at Clearstream International said, "The Repo market is showing excellent growth trends that reflect the key role it plays in financial markets. At Clearstream, we see this sector as a key area of competitive advantage and we have focused on enhancing our services and products in this area in partnership with our growing customer base. For example, our recent announcement to offer additional risk management solutions focusing on the growing collateral management demand for Asset-backed Securities (ABS) and other structured products has been highly appreciated by the market."
