Eurex sees volumes in repo rise
21 March 2019 Frankfurt
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Eurex’s recent launch of its Partnership Program in special repo and general collateral instruments is seeing a solid basis to accelerate further growth, Eurex’s head of funding and financing sales Frank Gast revealed.
Gast explained that average daily outstanding volume in the Eurex repo markets year-to-date is 24 percent above the comparable prior-year period.
He also noted that volume in special repos was up 27 percent, and that of general collateral pooling 12 percent year-on-year. Repo trading in German Bunds rose by 29 percent.
According to Gast, most of the repo partnership banks have become more active in recent months with a large focus on term transactions. As a result, order book activity on Eurex Repo’s F7 has broadened.
The Partnership Program has been active for six weeks, and Gast suggested that since the end of the early registration period at the end of November four further international market players have joined the programme.
The international market players include Banco Bilbao, Vizcaya Argentaria, NRW Bank and Société Générale.
Based on the February figures, the top ten performers have already benefited from the first revenue sharing. From July on, the top five will then be included in the governance and committee structure of Eurex Repo and Eurex Clearing.
Gast commented: “The aim of the programme is to increase choice and efficiency for market participants in special repo and general collateral instruments and to foster adoption and growth in the dealer-to-client repo business."
“We also expect additional business in our repo markets from our recently onboarded buy-side customers and those in the pipeline as well as buy-side firms joining the over-the-counter (OTC) interest rate swaps segment.”
Gast added: “Especially the latter will benefit from the simultaneous repo offering and resulting synergies with OTC interest rate swap.”
Gast explained that average daily outstanding volume in the Eurex repo markets year-to-date is 24 percent above the comparable prior-year period.
He also noted that volume in special repos was up 27 percent, and that of general collateral pooling 12 percent year-on-year. Repo trading in German Bunds rose by 29 percent.
According to Gast, most of the repo partnership banks have become more active in recent months with a large focus on term transactions. As a result, order book activity on Eurex Repo’s F7 has broadened.
The Partnership Program has been active for six weeks, and Gast suggested that since the end of the early registration period at the end of November four further international market players have joined the programme.
The international market players include Banco Bilbao, Vizcaya Argentaria, NRW Bank and Société Générale.
Based on the February figures, the top ten performers have already benefited from the first revenue sharing. From July on, the top five will then be included in the governance and committee structure of Eurex Repo and Eurex Clearing.
Gast commented: “The aim of the programme is to increase choice and efficiency for market participants in special repo and general collateral instruments and to foster adoption and growth in the dealer-to-client repo business."
“We also expect additional business in our repo markets from our recently onboarded buy-side customers and those in the pipeline as well as buy-side firms joining the over-the-counter (OTC) interest rate swaps segment.”
Gast added: “Especially the latter will benefit from the simultaneous repo offering and resulting synergies with OTC interest rate swap.”
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