LCH.Clearnet Introduces €GCPlus Central Clearing Service for the Tri-Party Repo Market in Collaboration with Euroclear and the Banque de France
Fixed income market participants can access liquidity through a wider range of Eurosystem eligible collateral
LCH.Clearnet SA (LCH.Clearnet) has launched €GCPlus, a central clearing service for the tri-party repo market, in collaboration with Euroclear and the Banque de France. The new service will enable fixed income trading desks, treasurers and other market participants to efficiently manage Eurosystem eligible collateral and to generate liquidity in a cleared environment, while benefitting from balance sheet netting and capital efficiencies.
Available via several leading e-platforms, the €GCPlus service enables fixed income market participants to re-use the eligible collateral received either with the Banque de France or with any of the 230 collateral takers on Euroclear’s collateral management system, the global Collateral Highway.
Christophe Hémon, Chief Executive Officer, LCH.Clearnet SA, said: “Our clearing members are increasingly looking for efficient solutions to manage cash and collateral. The €GCPlus service enables fixed income clearing members to address their funding needs, trade on multiple platforms, move collateral quickly and easily and maximise balance sheet netting and capital efficiencies – all while benefitting from a secure trading environment with robust risk management capabilities.”
Valerie Urbain, Chief Executive Officer of Euroclear Belgium, Euroclear France and Euroclear Nederland (ESES), said: “The Euroclear group’s design to help boost clients’ liquidity flows began with an initial collateral management offering with Banque de France. It evolved with our agreement with LCH.Clearnet to create a general collateral trading pool and reached its most recent milestone in June 2013, with the launch of interoperability between the Euroclear Bank collateral management platform and Euroclear France. €GCPlus is the final step in an over-arching solution allowing market participants to anonymously obtain liquidity irrespective of whether they are clients of Euroclear Bank or an ESES CSD. We are delighted to work with Banque de France and LCH.Clearnet to deliver solutions that help to increase the efficiencies of the capital markets.”
The Banque de France welcomes the implementation of the final component of the tripartite solution that was initiated by French market participants almost three years ago.
For further information:
Rachael Harper, LCH.Clearnet
+44 20 7426 7175
Aki Vlahodimos, Euroclear
+32 (0)2 326 4336
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The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and platforms as well as a range of OTC markets.
LCH.Clearnet’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of recent defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared.
LCH.Clearnet is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community.
Euroclear is one of the world’s largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and mutual fund transactions. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 572 trillion in securities transactions in 2013, representing 170 million domestic and cross-border transactions, and held almost EUR 24.2 trillion in assets for clients.