June 2016
Eurex Repo Trading – Work Smart
Eurex Repo, a member of Eurex Group, is the leading provider for international financing in
the secured money market business (repo and securities lending). Its marketplace combines
electronic trading with the efficiency and safety of clearing as well as standardized collateral
management and settlement for secured funding and financing transactions. Eurex Repo showed
an impressive growth rate of 42% per year since 2002. With around EUR 180 billion average
outstanding volume in 2015 (Jan – Oct 2015) it proves to be a highly liquid and reliable trading
venue. 145 participants from 16 countries are currently admitted to trading on Eurex Repo’s markets.
Overview on Eurex Repo Markets
Eurex Repo
Repo Market 1
GC Pooling Market
GC Pooling
(Interbank)
Select Invest
GC Repo
Special Repo
SecLend Market 1, 2
Standardized
baskets
Individual
schedules
Eurex Clearing (CCP)
Clearstream Banking (CBF/CBL)
All Eurex Repo Markets are operated on the web-based
Repo ensures straight-through processing with automated
trading system F7 to embrace the requirements of
connectivity to Eurex Clearing AG as central counterparty
a state-of-the-art trading environment for secured funding
and the settlement organizations Clearstream Banking and
and securities financing. F7 is user-friendly and enables
Euroclear. Trading is available daily from 07:00 CET with
flexible GUI configurations to consider the needs of
a pre-trading phase of 30 minutes. The main trading phase
different target groups and regulatory requirements.
starts at 7:30 CET and ends at 18:00 CET with the exception
Due to the web-based technical architecture, upcoming
of overnight trades. The cut-off times for overnight terms
release updates do not require installation on the customer
vary between the markets and products.
side, resulting in IT cost efficiency for the customers. Eurex
1 Settlement
2 Home
also via Euroclear Bank
market settlement for equity loans
1
GC Pooling Market
Repo Market
Secured funding for banks
Securities trading for banks
Key characteristics and benefits
Key characteristics and benefits
• Electronic and anonymous cash funding in EUR, USD and
• Anonymous, tailor-made financing with 26 standardized
CHF collateralized with fixed income and equity baskets
• Liquidity Coverage Ratio (LCR) compliant set of
General Collateral (GC) baskets of fixed income securities
against EUR or GBP
liquid assets including level 1 covered bonds within
• Single securities financing (Special trading)
the GC Pooling ECB basket
• Minimum trade size EUR/GBP 500,000 for single bonds
• Multiple standard terms from overnight to two years
• Re-use of collateral and pledge to ECB/Bundesbank/BCL
within the GC Pooling ECB Basket
• Re-use of collateral for the margin collateralization
of Eurex Clearing
• Balance sheet and settlement netting
• Automatic allocation of collateral
• Real-time substitution of collateral
and EUR/GBP 1 million for GC trades
• Multiple standard terms from overnight to two years
• Manual allocation of collateral enables selective
collateralization for GC trades
• Up to 30 different securities can be selected to collateralize
a GC Repo trade
• Possibility to limit the number of allocated securities for
GC trades
• Minimum trade size of EUR, USD, CHF 1 million
• Balance sheet and settlement netting
Select Invest
SecLend Market
Secured funding for corporates, insurance and
fund management companies.
Securities lending & borrowing for banks,
insurance and fund management companies
Key characteristics and benefits
Key characteristics and benefits
• Electronic and bilateral cash funding in EUR collateralized
• Electronic marketplace for securities lending & borrowing
with fixed income baskets (ECB-eligible securities)
• The preferred banks can be selected per mouse click in
the quote request entry window
transactions via Eurex Clearing’s CCP
• Bilateral trading with individual collateral schedules or
cash collateral (EUR/USD)
• Banks can use the existing GC Pooling infrastructure
• Standardized trading with collateral baskets
• Sufficient cash funding provided, Eurex Clearing accepts
• Agent and Principal Lending
the trade and steps in as counterparty (novation)
• Customized admission requirements for Eurex Repo and
Eurex Clearing (no trader exam, no need to contribute to
the clearing fund, no margin requirements)
• Minimized trading risks through comprehensive
risk management
• Full Eurex Clearing Securities Lending License or Specific
Lender License with simplified access requirements
• Benefits from Eurex Clearing’s CCP (capital cost and
collateral efficiencies, guaranteed delivery of loan
securities, nominal collateral and timely interest credit,
minimized counterparty risks)
• Multiple standard terms from overnight to two years
• Automatic invoicing and comprehensive reporting
• Cash taker transactions are allowed during the term of
• Loan securities: European equities, ETFs,
cash provider transactions under certain preconditions
• Free reports for tracking trade settlement
fixed income securities
• Principal collateral: cash (EUR/USD), international
• Automatic allocation of collateral
equities, ETFs, fixed income securities denominated
• Real-time substitution of collateral
in international currencies
• No fees charged by Eurex Repo and Eurex Clearing
• Minimum trade size of of EUR 1 million
• Minimum trades size of 1 share respectively 1,000 nominal
for bonds
More detailed information on each single
market can be found at www.eurexrepo.com.
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STOXX® GC Pooling EUR Deferred Funding Rate versus EONIA
Vol
RS
55
60
50
40
45
20
40
0
35 –20
30 –40
25 –60
20 –80
15 –100
2013
EONIA (traded volume in billion EUR)
2014
2015
STOXX® GC Pooling EUR Deferred Funding Rate (traded volume in billion EUR)
Rate spread Deferred vs. EONIA (in basis points)
Today the STOXX ® GC Pooling EUR Deffered Funding
the volume of EONIA and demonstrates the shift from
Rate is the first choice in the pan-European interbank
the unsecured towards the secured money market.
repo market. The liquidity is significantly higher than
STOXX ® GC Pooling
Indexes
EUR Secured Funding
Futures
The STOXX® GC Pooling index family is based on secured
Eurex Exchange, the derivatives market of the Eurex Group,
euro funding transactions and binding quotes taking
offers futures contracts on the STOXX ® GC Pooling Deferred
place on the GC Pooling Market. It offers a transparent,
Funding Rate compounded daily over the respective ECB
rules-based, independent alternative to unsecured interbank
maintenance periods. The EUR Secured Funding Futures
benchmarks such as LIBOR and EURIBOR/EONIA.
provide treasurers, repo desks, fund managers and collateral
The index family covers the full money market curve,
managers an efficient hedging tool to protect against
up to twelve months. Each index is available in three
money market imbalances.
versions – volume-weighted average rate indexes, current
rate indexes and total volume indexes.
In addition, a unique feature of this index family is
the introduction of funding rates. The STOXX® GC Pooling
EUR Funding Rates combine EUR ON, TN and SN transactions with a common trade date, the STOXX® GC Pooling
Deferred funding rates combine those with a common
Contract highlights at a glance
Underlying
STOXX ® GC Pooling EUR Deferred
Funding Rate
Contract value
EUR 1,000,000
Settlement
Cash
Delivery months
The five nearest European Central Bank
(ECB) Reserve Maintenance Periods
settlement date, both reflecting volumes and rates of
the short end of the money market curve. The funding
rates are based on transactions in the GC Pooling ECB
Basket and ECB EXTended Basket.
More details on www.stoxx.com
More details on www.eurexchange.com
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GC Pooling – development of outstanding volume from January 2005 – October 2015 (in billion EUR)
180
160
140
120
100
80
60
40
20
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
20-day moving average/single counted
Contact information
If you are interested in further information on our services,
please contact our sales team at [email protected].
Frankfurt
Paris
Ingo Deisenroth T +49-69-211-1 41 93
Frank Gast
Alexandra Morelle T +33-1-55 27-67 69
T +49-69-211-1 40 50
Nilüfer Kaya
T +49-69-211-1 40 86
Zurich
Esen Rose
T +49-69-211-131 72
André Ammann
T +44-20-78 62-72 38
www.eurexrepo.com
T +41-43-430-71 12
London
Dale Fullilove
Bethany Harlock T +44-20-78 62-72 28
© Eurex Repo GmbH, June 2016
Published by: Eurex Repo GmbH, Mergenthalerallee 61, 65760 Eschborn, Germany
Order Number: R5E-041-0316
Neither Eurex Repo GmbH (Eurex Repo), nor its servants nor agents, is responsible for any errors or omissions contained in this publication which is published for
marketing information only and shall not constitute an investment advice. Any information herein is not intended for solicitation purposes but only for
the use of general information for professional clients. Eurex Repo offers services directly to participants of the Eurex Repo markets. Those wishing to trade in
any products available on the Eurex Repo marketplace or to offer and sell any such products to others should consider both their legal and regulatory position in
the relevant jurisdiction and the risks associated with such products before doing so.
Trademarks and Service Marks
Eurex Repo®, Euro GC Pooling®, GC Pooling®, GCPI®, USD GC Pooling® are registered trademarks of DBAG. The STOXX® indexes, the data included therein and
the trademarks used in the index names are the intellectual property of STOXX Limited and/or its licensors. Eurex derivatives based on the STOXX® indexes are
in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto.
The names of other companies and third party products may be trademarks or service marks of their respective owners.
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