Repo Market

Principles

Repo Market participants can trade repos with a wide range of around 10,500 fixed income securities divided into 33 different baskets. In both segments, the General Collateral (GC) and the Special Repo segment, collateral can be turned into euro or pound sterling swiftly and anonymously with low risk through a central counterparty.

In the GC Repo segment, the manual allocation of single securities after the conclusion of a basket trade enables a selective collateralization directly via the trading screen.

The market offers securities such as:

• European Government Bonds
• Jumbo-Pfandbriefe and Pfandbriefe
• KfW/Laender Bonds
• European Covered Bonds
• Agency Bonds
• European Corporate Bonds

All securities of the various baskets can be traded in the Special segment as well.

Terms

Multiple standard terms from overnight up to more than two years are offered.
In addition open, variable and open variable terms offer maximum flexibility.

* Variable/Floating Rates:
€STR = Euro Short-Term Rate
EONIA = Euro OverNight Index Average
GCPION = STOXX GC Pooling EUR ON Index

More details can be found in the Basket Specifications. 

Open Order Book

The quote book contains all quotes entered by the participants with full market depth. The quotes are displayed per term/collateral combination including volume. All quotes are legally binding and will be automatically deleted at market close. Eurex Repo does not offer an automatic matching. The traders have to lift or hit a quote proactively. In addition to entering quotes two participants may agree on a trade bilaterally and enter the repo transaction into the system by using the pre-arranged trading functionality.

Contract Size

Minimum EUR, GBP 1 Million for GC Repo
Minimum EUR, GBP 500'000 for Special Repo

Trading Hours

Pre-trading phase: 07:00 - 07:30 Frankfurt am Main time

Trading Fees

• Admission fee of EUR 10.000
• Minimum transaction fees of EUR 800/month
• Annual and transaction fees according to the below listed fee group

Market Concept

The Repo Market ensures straight-through processing with automated connectivity to Eurex Clearing AG as central counterparty and the settlement organizations Clearstream Banking and Euroclear.
As soon as a repo transaction is concluded on the electronic Eurex Repo trading system, Eurex Clearing steps in as legal counterparty (CCP). Due to the anonymous trading through the CCP the participants do not have any legal relationship and bilateral risk with another bank.

Eurex Clearing performs e.g. the delivery management and the intra-day risk evaluation of all positions held by a participant. A comprehensive reporting informs the participant about the status of delivery activities and the margin requirements. On the settlement day Eurex Clearing sends the settlement instructions on behalf of the participants to Clearstream or Euroclear. Both settlement organizations provide reports on the settled cash and collateral.

Participation

• The applicant must be under the regulation of a domestic regulatory Authority
• The applicant must be a credit institution or an investment firm according to the definition set forth in Art. 1Paragraph 1 and 2 and Art 4 Paragraph 1 of the Council Directive on markets for financial instruments 2004/39/EG ("MiFID")
• The applicant is responsible for the technical connection to the Eurex Repo trading system
• The applicant is required to follow the Eurex Clearing clearing process
  • Directly: As a Clearing Member of Eurex Clearing
  • Indirectly: By signing an agreement with an existing Clearing Member

The applicant may apply for a General-Clearing or Direct-Clearing-Membership. The General Clearing Member (GCM) has the right to clear its own trades as well as the trades of its customers and Non Clearing Members (NCMs). The Direct Clearing Member (DCM) has the right to clear its own trades as well as the trades of its customers and NCMs provided they are affiliated.
Institutions and/or its branches which are permitted in its country of domicile to provide credit to customers in relation to the matching of orders or quotes and receive collateral from customers in the form of securities and cash may apply for admission.

In addition the Clearing Member must fulfill the following requirements:

• Minimum amount of liable equity capital
• Clearing fund contribution
• Cash Clearing: RTGS eligible account

Settlement and pledging of Securities:

• Securities deposit: at Clearstream Banking
• Pledged Securities Account: at Clearstream Banking Frankfurt or SegaInterSettle

Once a company becomes a participant, Eurex Repo does not limit the number of registered persons on its behalf.