Eurex introduces GC Pooling Green Bond Basket 29 April 2024 Europe Reporter: Sophie Downes
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Eurex has launched an additional Green Bond Basket in its GC Pooling segment.
The derivatives exchange says the offering will increase liquidity and efficiency in the European repo market for green bonds, thereby strengthening the green bond segment.
The bonds included in the basket are issued in the areas of renewable energy, sustainable waste management, preservation of biodiversity and sustainable land utilisation.
Clients will be able to use EUR, USD, GBP or CHF cash against a selection of 80 green bonds, issued by sovereign and supranational entities across seven countries within Europe.
In turn, collateral received from the basket can be re-used for Eurex Clearing margin with Clearstream TriParty.
Commenting on Eurex’s new offering, Carsten Hiller, head of repo sales Europe, says: “We believe that this basket will facilitate greater involvement from market participants, enabling them to efficiently manage collateral while promoting green initiatives.”
The new basket follows the introduction of three other Green Bond Baskets that were launched in the Special and GC Repo segments in 2020 and 2021.
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