Eurex Repo GC Pooling Select Secured Funding & Financing - - PowerPoint PPT Presentation

Eurex Repo

Marcel Naas, Managing Director

GC Pooling Select

Secured Funding & Financing Markets

GSF Singapore, April 23, 2013

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

2

Increasing Outstanding Volumes

Eurex Repo EUR (GC and Special) & GC Pooling Markets

20 day moving average; single counted

Volume record Euro Repo and GC Pooling Markets: Daily outstanding volume record € 209.2 bn reached

• n June 28, 2012

Participants: EUR Market: 116 (+22 in 2012) EUR Market: 118 (+2 in 2013) Thereof in GC Pooling: 105 (+22 in 2012) GC Pooling: 107 (+2 in 2013)

(Participant figures per end of March 2013)

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

GC Pooling Funding Rate: Benchmark for Secured Money Market

Established GC Pooling Short Term Rate versus EONIA

Single counted

3

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

Growing Number of Active Participants

Comparison daily average outstanding volume with number of active participants

Single counted

4

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

5

GC Pooling Select

To re-create trust between banks and their existing customers

GC Pooling Interbank Market Cash Takers & Cash Providers

Eurex Repo Eurex Clearing Central Bank Clearstream

CmaX/Xemac Luxembourg/ Frankfurt

Trading Clearing (CCP) Collateral Mgt / Settlement / Custody

GC Pooling Select Cash Providers

• nly

… on a pre-funded basis

GC Pooling GC Pooling Select

• New client segments:
• Corporates
• Insurance companies
• Asset Managers
• Hedge Funds
• Others
• Use of proven GC Pooling

value chain and services

• Simple and comfortable

trading with Eurex Repo

• Selected banks - acting as

”intermediaries” with numerous benefits

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

Key Benefits for Participants

Banks

Extension of secured B2B money market standard GC Pooling towards B2C by meeting growing industry demand and usage of proven GC Pooling value chain: § Use of existing infrastructure for client business § Easy expansion of product portfolio for corporate clients § Reinvest borrowed funds directly an immediately in the GC Pooling interbank market § Positive balance sheet effects by using Eurex Clearing as central counterpary

Corporate Clients

Secured electronic cash trading denominated in Euros with several preferred and trusted banks

Recreation of trust between banks and their existing customers

§ Receiving collateral commonly accepted in the interbank market as security § Flexible terms from overnight to 24 months § Mitigate systemic risks by using the benefits of a CCP-cleared repo transaction § Innovative pre-funding clearing concept lowers CCP-membership requirements for non-banks significantly § Automatic securities allocation & management

www.eurexrepo.com

Eurex Repo – Secured Funding & Financing Markets April 2013

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Trends in European B2C Secured Money Markets

Oliver Wymann “Going Secured: Trends in European B2C Secured Money Markets”, Jan. 2013: The Oliver Wymann publication “Going Secured: Trends in European B2C Secured Money Markets”, January 2013 “describes developments in the European secured cash investment market between banks and their ”non-bank” clients. … “ Summary: “ … four trends … will have far-reaching implications for secured money markets affecting banks and non-banks:” 1. “New regulation is putting substantial pressure on liquidity and capital management of banks. …” 2. “A broader shift towards standardised markets will increase electronic trading and clearing of secured cash investments. …” 3. “More integrated treasury solutions will emerge, ...” 4. “The growing need for collateral from banks and non-banks alike will increase the demand for global and fungible collateral pools, …” “We expect secured cash investments to be established as a core cash instrument for non-banks as treasuries further diversify their investments and standardised solutions facilitate operations. Non-banks will see an increasing benefit as cash and collateral providers. Opportunities will emerge for exchanges, CCPs and other market infrastructure players to open their pooled collateral solutions to non-banks. …”

*(Oliver Wymann “Going Secured: Trends in the European B2C Secured Money Markets”, January 2013)

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