LCH.Clearnet boosts liquidity for fixed income players
12 March 2014 Paris
Image: Shutterstock
LCH.Clearnet has launched €GCPlus, a central clearing service for the triparty repo market, in collaboration with Euroclear and the Banque de France.
The new service will enable fixed income trading desks, treasurers and other market participants to efficiently manage eurosystem-eligible collateral and to generate liquidity in a cleared environment, while benefitting from balance sheet netting and capital efficiencies, according to LCH.Clearnet.
Available via several e-platforms, the €GCPlus service enables fixed income market participants to re-use the eligible collateral received either with the Banque de France or with any of the 230 collateral takers on Euroclear’s collateral management system, the Collateral Highway.
“Our clearing members are increasingly looking for efficient solutions to manage cash and collateral,” commented Christophe Hémon, CEO of LCH.Clearnet SA.
“The €GCPlus service enables fixed income clearing members to address their funding needs, trade on multiple platforms, move collateral quickly and easily and maximise balance sheet netting and capital efficiencies—all while benefitting from a secure trading environment with robust risk management capabilities.”
Valerie Urbain, CEO of Euroclear Belgium, France and Nederland (ESES), charted the path the parties have taken to launch the €GCPlus service.
“The Euroclear group’s design to help boost clients’ liquidity flows began with an initial collateral management offering with Banque de France. It evolved with our agreement with LCH.Clearnet to create a general collateral trading pool and reached its most recent milestone in June 2013, with the launch of interoperability between the Euroclear Bank collateral management platform and Euroclear France.”
“€GCPlus is the final step in an over-arching solution allowing market participants to anonymously obtain liquidity irrespective of whether they are clients of Euroclear Bank or an ESES CSD. We are delighted to work with Banque de France and LCH.Clearnet to deliver solutions that help to increase the efficiencies of the capital markets.”
Euroclear’s Collateral Highway mobilised an average of €787 billion of collateralised transactions daily in 2013, a 12 percent increase year-on-year.
In its highlights of 2013, the group also showed that the value of securities held on behalf of its clients grew 5 percent year-on-year, to €24.2 trillion.
The number of netted transactions settled in the Euroclear group grew by 7.1 percent to a record 170.4 million, and the value of securities transactions settled, was €572.8 trillion, a 5.8 percent increase over the prior year.
The new service will enable fixed income trading desks, treasurers and other market participants to efficiently manage eurosystem-eligible collateral and to generate liquidity in a cleared environment, while benefitting from balance sheet netting and capital efficiencies, according to LCH.Clearnet.
Available via several e-platforms, the €GCPlus service enables fixed income market participants to re-use the eligible collateral received either with the Banque de France or with any of the 230 collateral takers on Euroclear’s collateral management system, the Collateral Highway.
“Our clearing members are increasingly looking for efficient solutions to manage cash and collateral,” commented Christophe Hémon, CEO of LCH.Clearnet SA.
“The €GCPlus service enables fixed income clearing members to address their funding needs, trade on multiple platforms, move collateral quickly and easily and maximise balance sheet netting and capital efficiencies—all while benefitting from a secure trading environment with robust risk management capabilities.”
Valerie Urbain, CEO of Euroclear Belgium, France and Nederland (ESES), charted the path the parties have taken to launch the €GCPlus service.
“The Euroclear group’s design to help boost clients’ liquidity flows began with an initial collateral management offering with Banque de France. It evolved with our agreement with LCH.Clearnet to create a general collateral trading pool and reached its most recent milestone in June 2013, with the launch of interoperability between the Euroclear Bank collateral management platform and Euroclear France.”
“€GCPlus is the final step in an over-arching solution allowing market participants to anonymously obtain liquidity irrespective of whether they are clients of Euroclear Bank or an ESES CSD. We are delighted to work with Banque de France and LCH.Clearnet to deliver solutions that help to increase the efficiencies of the capital markets.”
Euroclear’s Collateral Highway mobilised an average of €787 billion of collateralised transactions daily in 2013, a 12 percent increase year-on-year.
In its highlights of 2013, the group also showed that the value of securities held on behalf of its clients grew 5 percent year-on-year, to €24.2 trillion.
The number of netted transactions settled in the Euroclear group grew by 7.1 percent to a record 170.4 million, and the value of securities transactions settled, was €572.8 trillion, a 5.8 percent increase over the prior year.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
