.jpg)
Eurex Repo, a leading electronic marketplace for international repo trading and secured financing, continued to further grow last year. The volumes in the secured money market segment GC Pooling and the EUR repo market reached new record levels.
GC Pooling achieved €73 billion average outstanding volumes in 2009 on an annual basis. This volume development contributed to the annual growth rate (CAGR) of over 94 percent since its market launch in 2005.
Marcel Naas, Managing Director of Eurex Repo, said, “Our business model comprising anonymous electronic trading, central clearing and efficient collateral management via Clearstream really proved itself last year. The option of re-using collateral to generate refinancing capacity via the central bank was a particular contributing factor towards both the acceptance of the GC Pooling market and the stabilization of the money market, and helped our clients considerably in their liquidity management. The growth in volume in GC Pooling underscores the advantage of our solution; the rise in the number of participants in GC Pooling by almost 30 percent to the current 35 is further proof.”
The EUR repo market also recorded growth: Average outstanding volume in December 2009 was €99.4 billion, and for the year as a whole, €98.6 billion. Fifteen new participants joined in 2009, taking the total to 61. The CHF repo market remains slightly below the previous year’s high level.
Eurex Repo plans to further expand the GC Pooling market in 2010, and together with Clearstream, to launch new baskets with additional securities categories and currencies. Secured financing in US dollars is to be offered as soon as the end of January 2010.
Further information
GC Pooling offers a highly efficient market for trading central bank money and eligible assets, thereby creating a secondary market in the context of European Central Bank (ECB) open market transactions and integrated central clearing via Eurex Clearing, which considerably reduces counterparty risk.
The list of collateral currently comprises two baskets: The EXTended Basket covers over 23,000 securities listed in the ECB’s Eligible Asset Database (EAD) which meet the risk management criteria of Eurex Clearing. Launched in November 2008, the EXTended Basket complements the Euro GC Pooling Basket which was launched in March 2005. The latter comprises 8,000 securities, government bonds and securities issued by supranational issuers.
Since September 2009, Eurex Repo has calculated and published the GC Pooling® EUR Overnight Index (GCPI) to track the short-term interest rates on the secured money market: http://www.eurexrepo.com/gcpooling/overnight_index.html
