APG appoints Eurex for repo clearing 24 May 2022Germany Reporter: Bob Currie
Image: AdobeStock/Tobias Arhelger
APG Asset Management, the Netherlands-based pension fund asset manager, has announced that it will begin accessing Eurex’s cleared repo market from mid-June 2022.
Eurex indicates that this will enable APG to trade repurchase agreements with more than 150 participants registered on Eurex Repo and to invest or raise cash securely against more than 13,000 ISINs as securities collateral. Its integrated GC Pooling repo environment offers straight-through processing trade flow across the Eurex Repo trading platform, the Eurex Clearing central counterparty and Clearstream’s tri-party collateral management service, while delivering operationally robust management of cash variation margin and initial margin requirements.
Eurex Clearing offers its ISA Direct Clearing service for repurchase agreements and for over-the-counter traded interest rate swaps. It provides repo clearing in four currencies, namely EUR, USD, GBP and CHF.
On bringing ABP onto its repo clearing service, with approximately €600 billion in pension assets, Eurex will support pension fund clients with more than €1 trillion aggregate assets under management.
With increasing demand from buy-side firms, Eurex plans to allow further client groups to access cleared repo markets through its new ISA Direct Indemnified model from July 2022.
APG head of treasury and trading Jan-Mark van Mill comments: “The direct link to Eurex’s cleared repo markets is an important enhancement of our collateral and cash management capabilities. Thanks to Eurex’s ISA Direct clearing service, our clients are better prepared for the potentially upcoming derivatives clearing obligation for pension funds.”
Eurex’s head of securities financing product and business development Frank Odendall says: “Onboarding APG funds is the latest successful step in our efforts to open our centrally cleared markets to a greater diversity of market participants.
“Our ISA Direct model, available for both repos and over-the-counter traded interest rate swaps, offers market participants tangible benefits in terms of risk management and collateral optimisation.”
Societe Generale head of prime sales Netherlands Dirk Bellens adds: “We are proud that APG chose Societe Generale as partner to access the cleared repo market. Our continued partnership with Eurex allows clients like APG to access increased liquidity and enhanced credit exposure. This type of innovative solution, partnership and forward thinking continues to demonstrate Societe Generale leadership in the clearing space.”
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Image: AdobeStock/Tobias Arhelger 