Eurex Repo, the electronic repo market of the international derivatives exchange Eurex, set several new records in 2007 following the internationalization of Euro GC Pooling with additional European collaterals in September 2007.
On 7 December 2007, a new daily record was set with daily outstanding volume in Euro GC Pooling peaking at 31.7 billion, average outstanding volume in December 2007 rose by 156 percent to 22.8 billion. On a quarterly basis, the growth of volume was 76 percent, totaling 20.2 billion.
The average annual growth rate has totaled 65% since it was launched in March 2005. 21 Eurex Repo participants are currently active in this segment. Euro GC Pooling also enables the settlement of high-volume transactions, and has already processed individual transactions in excess of 10 billion.
Euro GC pooling is the first electronic market in Europe to enable cross-border liquidity management via a wide range of ECB-eligible collateral thanks to the straight-through-processing link established in September 2007 between Clearstream Banking Frankfurt (CBF) and Clearstream Banking Luxembourg (CBL).
All Clearstream customers can now manage more than 8,000 securities as collateral in Euro GC Pooling. This collateral basket can also be used as collateral for refinancing within the framework of ECB open market transactions.
“This extension of Euro GC Pooling has been proven to be extremely successful. This trend continues in 2008 with a new record on 4 January with 32.2 billion of daily outstanding volume. Our unique combination of collateralized money market trading with the efficiency of Eurex Clearing’s central counterparty has been widely accepted by market participants. Our offering highly facilitates our customers to actively manage their Euro liquidity,” says Marcel Naas, managing director, Eurex Repo GmbH.
“The rapid growth on Euro GC pooling confirms that Eurex and Clearstream have taken the right steps in providing their customers with a much larger collateral pool. For all financial institutions, managing collateral efficiently and in a centralized way has become increasingly important,” adds Stefan Lepp, head of Global Securities Financing, Clearstream.
For Clearstream’s Global Securities Financing services, which include triparty repo, securities lending and collateral management reached in 2007, a yearly average outstandings of 327.8 billion compared to 254.6 billion in 2006. Currently, outstanding volumes are 366 billion.
Altogether, Eurex Repo continued to grow in 2007: average outstanding volume of all repo market grew by 9%, totaling at 92 billion. The Euro repo market saw stronger growth during this period: daily outstanding volume peaked in December with more than 58 billion, overall average outstanding volume in 2007 grew by 13% to almost 47 billion; December figures outperforming the general growth with an increase of 39%.
Average outstanding volume on the CHF repo market totaled CHF68 billion in 2007. On the last day of 2007, a new peak was set with CHF100.7 billion, bringing the average outstanding volumes in December 2007 to CHF79.5 billion.