Eurex Repo GC Pooling Select Secured Funding & Financing Markets GSF Singapore, April 23, 2013 Marcel Naas, Managing Director
Eurex Repo – Secured Funding & Financing Markets April 2013 Increasing Outstanding Volumes Eurex Repo EUR (GC and Special) & GC Pooling Markets Volume record Euro Repo and GC Pooling Markets: Daily outstanding volume record € 209.2 bn reached on June 28, 2012 Participants: EUR Market: 116 ( +22 in 2012) EUR Market: 118 ( +2 in 2013) Thereof in GC Pooling: 105 ( +22 in 2012) GC Pooling: 107 ( +2 in 2013) (Participant figures per end of March 2013) 20 day moving average; single counted 2 www.eurexrepo.com
Eurex Repo – Secured Funding & Financing Markets April 2013 GC Pooling Funding Rate: Benchmark for Secured Money Market Established GC Pooling Short Term Rate versus EONIA Single counted 3 www.eurexrepo.com
Eurex Repo – Secured Funding & Financing Markets April 2013 Growing Number of Active Participants Comparison daily average outstanding volume with number of active participants Single counted 4 www.eurexrepo.com
Eurex Repo – Secured Funding & Financing Markets April 2013 GC Pooling Select To re-create trust between banks and their existing customers GC Pooling GC Pooling Select • New client segments: - Corporates Eurex Repo Trading - Insurance companies - Asset Managers - Hedge Funds GC Pooling GC Pooling - Others Interbank Select Market Cash • Use of proven GC Pooling Eurex Clearing Clearing (CCP) Cash Providers value chain and services Takers only & Cash … on a • Simple and comfortable Providers pre-funded basis Clearstream trading with Eurex Repo Collateral Mgt / CmaX/Xemac • Selected banks - acting as Settlement / Custody Luxembourg/ ”intermediaries” with Frankfurt numerous benefits Central Bank 5 www.eurexrepo.com
Eurex Repo – Secured Funding & Financing Markets April 2013 Key Benefits for Participants Banks Corporate Clients Extension of secured B2B money market standard Secured electronic cash trading denominated in GC Pooling towards B2C by meeting growing Euros with several preferred and trusted banks industry demand and usage of proven GC Pooling value chain: § Receiving collateral commonly accepted in the § Use of existing infrastructure for client business interbank market as security § Flexible terms from overnight to 24 months § Easy expansion of product portfolio for corporate clients § Mitigate systemic risks by using the benefits of a CCP-cleared repo transaction § Reinvest borrowed funds directly an immediately in the GC Pooling interbank market § Innovative pre-funding clearing concept lowers CCP-membership requirements for non-banks § Positive balance sheet effects by using Eurex significantly Clearing as central counterpary § Automatic securities allocation & management Recreation of trust between banks and their existing customers www.eurexrepo.com
Eurex Repo – Secured Funding & Financing Markets April 2013 Press Releases & Articles Trends in European B2C Secured Money Markets Oliver Wymann “Going Secured: Trends in European B2C Secured Money Markets”, Jan. 2013: The Oliver Wymann publication “Going Secured: Trends in European B2C Secured Money Markets”, January 2013 “describes developments in the European secured cash investment market between banks and their ”non-bank” clients. … “ Summary: “ … four trends … will have far-reaching implications for secured money markets affecting banks and non-banks:” 1. “New regulation is putting substantial pressure on liquidity and capital management of banks. …” 2. “A broader shift towards standardised markets will increase electronic trading and clearing of secured cash investments. …” 3. “More integrated treasury solutions will emerge, ...” 4. “The growing need for collateral from banks and non-banks alike will increase the demand for global and fungible collateral pools, …” “We expect secured cash investments to be established as a core cash instrument for non-banks as treasuries further diversify their investments and standardised solutions facilitate operations. Non-banks will see an increasing benefit as cash and collateral providers. Opportunities will emerge for exchanges, CCPs and other market infrastructure players to open their pooled collateral solutions to non-banks. …” *(Oliver Wymann “Going Secured: Trends in the European B2C Secured Money Markets”, January 2013) 7 www.eurexrepo.com
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