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GFF Summit 2019: Connecting buy-side clients from across Europe and beyond

Release date: 25 Jan 2019 | Eurex Exchange, Eurex Clearing

GFF Summit 2019: Connecting buy-side clients from across Europe and beyond

By Frank Odendall, Head of Buy-Side Repo Initiative at Eurex

Eurex Clearing made significant inroads for the clearing of EUR-denominated OTC IRS in 2018 connecting buy-side clients from across Europe and beyond. Similarly, Eurex Repo successfully on-boarded pension funds, investment funds and regional banks from the Netherlands, UK and Spain to Eurex Repo’s centrally cleared repo market as both cash takers and cash providers utilizing the innovative Select Finance – ISA Direct for Repo direct access model.

Optimizing collateral management processes

The streamlined handling of margin requirements for centrally cleared and non-cleared derivatives at multiple locations whilst simultaneously aligning bond, cash and repo positions becomes increasingly essential. Existing operational processes, set-ups and access to liquidity providers are therefore often deemed no longer fit for purpose. Clients recognize more and more that the integrated offering of Eurex Repo, Clearstream and Eurex Clearing for centrally cleared repos and OTC IRS adds significant value in terms of risk mitigation and result in additional benefits, such as:

Improved access to repo liquidity

Additional trading counterparties, better netting opportunities for the sell-side as well as the possibility for multi- and cross-currency repo are leading to improved access to repo liquidity.

Operational efficiency

The superior cash management capabilities of GC Pooling as well as collateral re-use of GC Pooling for OTC IRS margin requirements and electronic execution of repos on regulated MTFs (“Best Execution”) play a key role to further increase operational efficiency.

This year’s Global Funding and Financing (GFF) Summit takes place from 29 to 31 January. Please find the agenda here