Eurex Repo had Euros 54 billion of overnight repo transactions outstanding on its platform on Monday. This is up by half compared with a year ago. The platform now has 143 participants registered to trade through it.
Eurex Repo is confident that growth will continue, thanks to the new functionality it has introduced for the German Finance Agency, which makes it possible for new issues of Bunds to be used in repo trading as early as two days prior to the value date.
Growth in euro repo was particularly strongth, says Eurex Repo. Outstanding volumes in the first half were up four-fold on a year earlier, to Euros 11.2 billion on average, with peaks ranging as high as Euros 14 billion. The euro repo market has 24 participants, double the number last summer. Eurex repo also claims market leadership in repo trading with Jumbo Pfandbriefe.
The Swiss franc repo market, which has existed since June 1999, had Euros 40 billion in average outstandings in the first half, a rise of 26 percent on 2002. A total of 119 firms are active in the market, and Eurex says it expects another 80 participants to join within the next two years, after the Swiss National Bank (SNB) starts managing its Lombard facility via Eurex Repo in early 2004. From that point, a bank that has a Lombard credit limit can make use of this facility on short notice via Eurex Repo to bridge an unexpected liquidity squeeze.