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Find out about our GC Pooling Select Invest and more

Release date: 16 Mar 2015 | Eurex Clearing

Find out about our GC Pooling Select Invest and more

2015 is progressing fast and we wanted to take the opportunity to update you on the latest developments at Eurex Clearing.

EurexOTC Clear clients and volumes

As of today, the number of Clearing Members fully admitted stands at 41 and the number of Registered Customers increased to 72. We are currently assisting a significant number of Clearing Members and Registered Customers to onboard with us.

Volumes have also increased since the start of 2015 and stand at over EUR 115 billion total cleared notional outstanding to date. We also saw first volume being cleared in GBP.

Collateral management

We are also continually enhancing our collateral services, both based on specific Member feedback, to improve the overall efficiency, flexibility and reducing risk. We have had quite some feedback from you with regards to the rising costs for cash and government bonds for margin collateral. Eurex Clearing offers the widest collateral spectrum among all CCPs globally giving you the ability to have the most cost efficient collateral mix by allowing corporate bonds, agencies or equities. Please let us know if you would like to discuss your collateral management options with us.

Zero-Coupon Inflation Swaps

As you may know, we are planning to extend our EurexOTC Clear IRS product scope to Zero-Coupon Inflation Swaps (ZCIS) on the most liquid indexes: European HIPxT, French CPIx and UK RPI. While the introduction of our ZCIS products is subject to regulatory approval, our Clearing Members and Registered Customers can access these products already in simulation and on our MarginCalculator. This will allow you to start to assess the benefits of clearing a combined OTC IRS, Inflation Swaps and ETD portfolio.

GC Pooling Select Invest

Launched in March 2005, GC Pooling has become a highly liquid market for secured funding in EUR and USD currently with EUR 160 billion outstanding. Together with Eurex Repo and Clearstream Banking we have expanded our GC Pooling market to include a new segment, GC Pooling Select Invest. This new segment allows clients such as asset managers, corporations, and pension funds to also benefit from the advantages of secured cash investment combined with the benefits of central clearing. Buy side clients can therefore act as cash providers to banks while the bank collateralizes the borrowed funds using ECB-eligible securities all with mitigated counterparty risk and minimal impact on banks' capital requirements due to having Eurex Clearing as the central counterparty.

We are currently in the process of expanding the GC Pooling Select Invest license to allow not only cash investments, but also cash funding. This new GC Pooling Select Finance license is currently planned to be rolled-out in summer 2015.

Insolvency overview

We were asked by our Members for a generic description of the impact and the consequences of an insolvency of a client, a Clearing Member or Eurex Clearing under our clearing models. In light of this requests, we have prepared for you a "Client Asset Protection - Insolvency and Porting Overview" which explains the clearing models of Eurex Clearing and the general course of action that we may take following a party's insolvency, where porting is unsuccessful. You can download the document here.

And finally, our CEO, Thomas Book, recently published an article on risk and recovery in the FT Trading Room where he gives his viewpoint on why CCP resolution and recovery plans are the most systemic of all risk management tools.


Eurex Clearing AG | London Office
Clearing Business Relations

T +44 20 7862 7656