Clearstream and Eurex Repo open their customers the opportunity to pledge the securities as collateral to the European Central Bank (ECB). Such service is available due to the extension of the GC Pooling market and the Eurosystem Collateral Management Services to French bonds.
The Euro GC Pooling basket was launched after the approval of the Governing Council of the ECB to use the direct and the relayed link from Clearstream Luxembourg and Clearstream Banking Frankfurt to Euroclear France. The service enables eligible counterparties to benefit from Clearstream’s Collateral Management Services by including these assets in their collateral pool comprising Eurobonds, government bonds, covered bonds (e.g. Pfandbriefe) and agency bonds from Germany, Italy, Austria, Belgium, the Netherlands, Luxembourg and France.
Key benefits of GC Pooling are the automated exchange of securities andmoney, collateral management service and trading on a fully electronic trading system including a central counterparty. The highest daily volume of GC Pooling in October reached €56 billion.
“The GC Pooling market has proven to be a reliable liquidity pool even in difficult market circumstances,” says Marcel Naas, managing director, Eurex Repo GmbH. “The latest enhancement to French bonds as ECB eligible collateral increases the efficiency and cash funding potential for ourparticipants.”
L.D.