Eurex Repo and Eurex Clearing have expanded the existing, successful interbank markets to address buy-side clients. In contrast to the anonymous interbank markets, the customized buy-side trading permissions offer bilateral trading. This allows banks and their buy-side clients to continue their existing business relationships. The Select Finance trading permission provides buy-side clients such as regulated financial service companies, insurance and reinsurance undertakings, pension funds or investment funds access to the GC Pooling and Repo market.
Select Finance is designed to accommodate buy-side needs, specifically those of pension funds and asset managers, for variation margin funding. By leveraging proven GC Pooling infrastructure clients are enabled to perform collateral transformation for cash margin coverage.
07:30 - 18:00 Frankfurt am Main time, Overnight (ON) deadlines depending on markets and products
Minimum trade size of one million EUR, USD, CHF or GBP in all baskets
Minimum trade size of 500,000 EUR for single bonds
Minimum trades size of one share respectively 1,000 nominal for bonds
Buy-side clients that are domiciled in the European Union or Switzerland can participate. The following steps need to be taken:
A Clearing Agent must be an existing General Repo Clearing Member of Eurex Clearing. The Clearing Agent is required to provide at least the clearing fund contribution and default management bidding obligations on behalf of the Select Finance participant. In addition further cash, transaction and collateral management services may be provided.
Video: ISA Direct for Repo