Eurex Repo, the electronic repo market owned by Deutsche Borse, saw its average outstanding volume in Q3 – the key figure for repo markets – up 30 percent on the same quarter of last year, rising to Euros 60 billion (US$ 75 billion).
The strongest performer was the Swiss Franc Repo Market, reaching an outstanding volume of Euros 42.6 billion (US$ 53.25 billion) in the third quarter, or an increase of 31 per cent (Euros 32.5 billion) (US$ 40.62 billion) compared with Q3 of last year.
The Euro Repo Market grew by 23 percent to Euros 16.6 billion (US$ 20.75 billion) (Q3 2003: Euros 13.5 billion (US$ 16.88 billion)). An outstanding volume of Euros 70.7 billion (US$ 88.38 billion) in June 2004 was a new record daily volume for Eurex Repo, Euros 23.2 billion (US$ 29 billion) of which was accounted for by the Euro Market, and Euros 47.5 billion (US$ 59.38 billion) by the Swiss Franc Market.
Eurex Repo has attained ten new participants since October last year. The number of global banks in particular has increased dramatically, with 154 banks from 9 different countries now admitted for trading on Eurex repo markets. These companies come from Austria, Belgium, France, Germany, Lichtenstein, Luxembourg, the Netherlands, Switzerland, and the UK. The number of participants in the Euro Repo Market has risen from 25 banks last October to 35. The Swiss Franc Repo Market now includes 119 banks as active members.
In addition, Eurex Repo has announced the launch of a new product, Euro GC Pooling. Euro GC Pooling offers short term collateralized funding and collateral management. The new product, offered together with Eurex Clearing AG and Clearstream Banking AG, offers cash-driven, international trading of a general collateral basket with over 9,000 ECB eligible securities.
“With Euro GC Pooling, Eurex Repo will raise efficiency in the trading and collateral management of secured money market transactions, and to help participants optimize in terms of collateral management,” says a Eurex spokesman. “Euro GC Pooling will be available to Eurex Repo participants in March 2005. Euro GC Pooling is a fully-integrated trading, clearing, settlement and collateral process, executing secured liquidity management with same-day payment and delivery (Overnight), for the first time on the repo market. Moreover, a new type of Euro GC Pooling contract, tailored to the specific settlement terms for the weekly open market tenders of the European Central Bank, will provide efficient management of collaterals and liquidity.”
Eurex Repo operates the Swiss Franc and Euro Repo Markets. The Swiss Franc Market was launched in 1999, with the Euro Market following in 2001.