Successful business development for Eurex Repo in 2009
Record results for EUR repo and GC Pooling markets in 2009/ Expansion of GC Pooling planned to include secured financing in US dollars
Eurex Repo, a leading electronic marketplace for international repo trading and secured financing, continued to further grow last year. The volumes in the secured money market segment GC Pooling and the EUR repo market reached new record levels.
GC Pooling achieved €73 billion average outstanding volumes in 2009 on an annual basis. This volume development contributed to the annual growth rate (CAGR) of over 94 percent since its market launch in 2005.
Marcel Naas, Managing Director of Eurex Repo, said, “Our business model comprising anonymous electronic trading, central clearing and efficient collateral management via Clearstream really proved itself last year. The option of re-using collateral to generate refinancing capacity via the central bank was a particular contributing factor towards both the acceptance of the GC Pooling market and the stabilization of the money market, and helped our clients considerably in their liquidity management. The growth in volume in GC Pooling underscores the advantage of our solution; the rise in the number of participants in GC Pooling by almost 30 percent to the current 35 is further proof.”
The EUR repo market also recorded growth: Average outstanding volume in December 2009 was €99.4 billion, and for the year as a whole, €98.6 billion. Fifteen new participants joined in 2009, taking the total to 61. The CHF repo market remains slightly below the previous year’s high level.
Eurex Repo plans to further expand the GC Pooling market in 2010, and together with Clearstream, to launch new baskets with additional securities categories and currencies. Secured financing in US dollars is to be offered as soon as the end of January 2010.
About Eurex Repo
Eurex Repo (www.eurexrepo.com) ranks among the leading markets for electronic repo trading and operates the CHF and EUR Repo Markets. The CHF Repo Market was launched in 1999, and the EUR Repo Market followed in 2001. More than 235 participants from ten countries are currently admitted to trading on Eurex’s repo markets. Eurex Repo is the only platform in Europe to offer all of the advantages of electronic trading in combination with the anonymity of the central counterparty Eurex Clearing AG and Clearstream Banking’s centralized collateral management system.
Eurex Repo is a wholly-owned subsidiary of Eurex Frankfurt AG. Repo trading allows banks to lend/borrow their security holdings in exchange for money and receive or grant liquidity as a result. The ECB and the majority of national European central banks use repo transactions to control money supply.
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