Eurex says the outstanding volume on its Euro repo platform has increased by over 300 per cent to Euros 10 billion in the last year.
The participation of the German Finance Agency on the Eurex Repo platform since May 2002 has certainly made the platform more attractive, but Eurex Repo also claims market leadership in repo trading with German Jumbo Pfandbriefe. In addition, with the introduction of a KFW/German states basket for general collateral trading in November 2002, Eurex Repo has brought a new and popular product to the market.
Twenty banks now trade on Eurex Euro Repo, which was launched in July 2001 with just eight participants. “The interest of international market participants in trading on Eurex Repo has increased considerably,” says Eurex. “The Auto-GC-Completion functionality made a major contribution to the success of Eurex Repo during the year.”
The Auto-GC function allows participants to specify a basket of German government bonds and Jumbo Pfandbriefe for GC repos before trading, choosing the securities from a list that is geared to suit their trading strategies, and so allowing them to select a defined number of specific securities for delivery.
Eurex Repo also claims to be the cheapest platform. It says a transaction equivalent to Euros 100 million with a term of one day costs the participant less than Euros 17 for trading and clearing.
“Smooth processing of the transactions on Eurex Repo is guaranteed by Eurex Clearing AG, which functions as the central counterparty for the buyer and the seller,” continues Eurex. “Eurex is the only exchange organization worldwide that provides the market with all clearing services for the entire fixed-income segment, in addition to trading.”