Eurex Repo, an electronic repo market opperated by international derivatives exchange Eurex, is to restructure its Euro GC Pooling offering in a move that will make it the first electronic market in Europe to enable cross-border liquidity management via a wide range of European Central Bank (ECB)-eligible collateral, says Eurex.
From September, the scale of available securities holdings for Euro GC Pooling transactions will be extended to include Eurobonds, a range of other European bonds and German bonds.
Straight-through processing (STP) for the management of Euro GC Pooling transactions has been enhanced by connecting Clearstream Banking Frankfurt (CBF) and Clearstream Banking Luxembourg (CBL) to the Euro GC Pooling system. All Clearstream's customers will be able to use more than 8,000 securities as collateral in Euro GC Pooling.
"This is a significant step forward for the streamlining and automation of collateral management in Europe. The expansion of Euro GC Pooling creates a much larger collateral pool for Clearstream's clients. They will be able to actively manage their euro liquidity as well as optimise their use of collateral through access to Clearstream's collateral management solutions," says Stefan Lepp, head of global securities financing, Clearstream.
According to Eurex Repo, in August 2007, the daily average outstanding volume in Euro GC Pooling peaked at €17 billion and the average annual growth rate has totalled 48 percent since it was launched in March 2005. Euro GC Pooling has processed individual transactions in excess of €10 billion, says the firm.