The new segment comprises US dollar cash trading and extends the secured funding possibilities for the current 35 market participants already active in this market by introducing a second global currency.
The open order book allows US dollar cash trading against the existing GC Pooling ECB basket which is based on Clearstream’s collateral pool. Eurex Clearing acts after trade acceptance as central counterparty for all transactions and operates all of the delivery management and corporate action handling; US dollar currency risk is integrated into the standard margin and reporting system.
GC Pooling offers a reliable way to manage open market operations of the Eurosystem as well as an integrated CCP that mitigates counterparty risks.
Marcel Naas, managing director of Eurex Repo, said: “With our new USD GC Pooling segment, we broaden our market from a dedicated euro environment to a multicurrency environment. As in our existing Euro GC Pooling segment, we provide access to secured US dollar liquidity in an efficient and risk-optimized environment. Eurex Clearing acts as central counterparty, thereby offering netting and mitigating counterparty risk.”
Stefan Lepp, member of the executive board of Clearstream, said: “As in the Euro GC Pooling segment, we offer automated allocation of collateral to cover the new US dollar exposure. Moreover, any collateral received by participants via USD GC Pooling can be either reused to cover additional USD GC Pooling transactions or directly pledged towards Deutsche Bundesbank.”
