LCH.Clearnet SA, the French operating CCP of LCH Clearnet Group, has partnered with Euroclear and the Banque de France to launch €GCPlus, a central clearing service for the tri-party repo market.
The new service will be available through trading platforms from MTS, BrokerTec and tpREPO, enabling fixed income trading desks, treasurers and other market participants to reuse the eligible collateral received either with the Banque de France or with any of the 230 collateral takers on Euroclear’s collateral management system, the global Collateral Highway.
“Our clearing members are increasingly looking for efficient solutions to manage cash and collateral. The €GCPlus service enables fixed income clearing members to address their funding needs, trade on multiple platforms, move collateral quickly and easily and maximize balance sheet netting and capital efficiencies—all while benefitting from a secure trading environment with robust risk management capabilities,” says Christophe Hémon, CEO, LCH.Clearnet SA.
Valerie Urbain, CEO of Euroclear Belgium, Euroclear France and Euroclear Nederland (ESES), adds: “The Euroclear group’s design to help boost clients’ liquidity flows began with an initial collateral management offering with Banque de France. It evolved with our agreement with LCH.Clearnet to create a general collateral trading pool and reached its most recent milestone in June 2013, with the launch of interoperability between the Euroclear Bank collateral management platform and Euroclear France. €GCPlus is the final step in an over-arching solution allowing market participants to anonymously obtain liquidity irrespective of whether they are clients of Euroclear Bank or an ESES CSD.”
LCH.Clearnet, Euroclear and Banque de France Partner on Repo Clearing Service
LCH.Clearnet SA, the French operating CCP of LCH Clearnet Group, has partnered with Euroclear and the Banque de France to launch €GCPlus, a central clearing service for the tri-party repo market.