The strongest performer was the Swiss Franc Repo Market, reaching an outstanding volume of €42.6 billion in the third quarter, or an increase of 31 percent (€32.5 billion) compared with Q3 of last year. The Euro Repo Market grew by 23 percent to €16.6 billion (Q3 2003: €13.5 billion). An outstanding volume of €70.7 billion in June 2004 was a new record daily volume for Eurex Repo, €23.2 billion of which was accounted for by the Euro Market, and €47.5 billion by the Swiss Franc Market.
Eurex Repo has attained ten new participants since October last year. The number of global banks in particular has increased dramatically, with 154 banks from 9 different countries now admitted for trading on Eurex repo markets. These companies come from Austria, Belgium, France, Germany, Lichtenstein, Luxembourg, the Netherlands, Switzerland, and the UK. The number of participants in the Euro Repo Market has risen from 25 banks last October to 35. The Swiss Franc Repo Market now includes 119 banks as active members.
In addition, Eurex Repo has announced the launch of its new product, Euro GC Pooling®. Euro GC Pooling offers short term collateralized funding and collateral management. With the new product, Eurex Repo, together with Eurex Clearing AG, and Clearstream Banking AG, offers cash-driven, international trading of a general collateral basket with over 9,000 ECB eligible securities. With Euro GC Pooling, Eurex Repo will raise efficiency in the trading and collateral management of secured money market transactions, and to help participants optimize in terms of collateral management. Euro GC Pooling will be available to Eurex Repo participants in March 2005.
Euro GC Pooling is a fully-integrated trading, clearing, settlement and collateral process, executing secured liquidity management with same-day payment and delivery (Overnight), for the first time on the repo market. Moreover, a new type of Euro GC Pooling contract, tailored to the specific settlement terms for the weekly open market tenders of the European Central Bank, will provide efficient management of collaterals and liquidity.
About Eurex Repo:
"Repo" (securities repurchase transaction) is used to
describe a transaction whereby the borrower provides
securities to the lender in the form of high-quality, fixed-income securities. The preference towards limiting the credit risk exposure leads to an increase of secured money market transactions via repo-transactions. Repo transactions via electronic trading platforms are becoming more and more significant, replacing the secured loans with terms of up to one year in interbank trading. Reasons for the increase in popularity can be attributed to the elimination of default risks, thanks to collateralization with fixed-income securities.
Eurex Repo (www.eurexrepo.com) is one the leading electronic repo markets, and operates the Swiss Franc and Euro Repo Markets. The Swiss Frank Market was launched in 1999, with the Euro Market following in 2001. Eurex Repo is a 100-percent subsidiary of the world's largest derivatives exchange Eurex.
