A member of
Eurex | Eurex Clearing
Following the success of the Partnership Program for the OTC interest rate derivatives segment, Eurex has expanded the offering to the repo segment. The extension of the program will allow participants not only to benefit from cross-product margin across listed and OTC derivatives but also to include repo into that pool. Eurex Clearing and Eurex Repo share governance and economics with the most active program participants.
The program aims to establish an alternative for trading and clearing special and GC Repo transactions in German and other European government bonds within the EU27. Although the program for the repo segment will not start until Q1/2019, 25 participants have already registered and expressed their interest in a major shift of their business in European government bonds, particularly German Bunds.
Key drivers
Our aim is to best support the industry in managing the current uncertainty and potential requirements post-Brexit, as a significant part of the cleared European government bond repo business is domiciled in the UK. The shift to Eurex as a trading and clearing platform within the EU27 is not only driven by Brexit. For many institutions, the key drivers are the benefits derived from TARGET2-Securities (T2S), the Euro system’s harmonized securities settlement service, which enables real-time settlement of national and cross-border securities transactions in central bank money. Clearing members can take advantage of reduced capital and margin requirements and lower balance sheet utilization when using a CCP for clearing and a unified settlement infrastructure.
This year’s Global Funding and Financing (GFF) Summit takes place from 29 to 31 January. Please find the agenda here.