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Six weeks Eurex's Repo Partnership Program – solid basis to accelerate further growth

Release date: 21 Mar 2019 | Eurex Exchange, Eurex Clearing

Six weeks Eurex's Repo Partnership Program – solid basis to accelerate further growth

On 1 February, Eurex officially launched its Partnership Program in Special Repo and General Collateral instruments to increase choice and efficiency for market participants. We talked to Frank Gast, Head of Funding and Financing Sales at Eurex, about how the program started and what he expects for 2019.

Frank Gast, Head of Funding and Financing Sales at EurexZoom

Frank Gast, Head of Funding and Financing Sales at Eurex

Frank, the first six weeks are over. How is the program going?

In my opinion very good. Since the end of the early registration period at the end of November further four international market players have joined the program. These are BBVA, KfW, NRW Bank and Société Générale. In total, we now have 28 program participants. 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.

And how is this reflected in the volumes?

Average daily outstanding volume in the Eurex Repo markets year-to-date is 24 percent above the comparable prior-year period: Volume in Special Repos was up 27 percent, and that of GC Pooling 12 percent year-on-year. Repo trading in German Bunds rose by 29 percent. Most of the Repo partnership banks have become more active in recent months with a large focus on term transactions. As a result, orderbook activity on Eurex Repo’s F7 has broadened.

What goals have you set yourself for this year?

I think the existing volumes and membership base provides a solid basis to accelerate further growth. The aim of the program 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 OTC interest rate swaps segment. Especially the latter will benefit from the simultaneous repo offering and resulting synergies with OTC IRS.