LCH.Clearnet has launched a central clearing service for the tri-party repo market in collaboration with Euroclear and Banque de France.

The new service, called €GCPlus, 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.

According to the firm the service enables fixed income market participants to re-use eligible collateral received either with the Banque de France or with any of the 230 collateral takers on Euroclear’s collateral management system.
 
Christophe Hémon, CEO LCH.Clearnet, 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, CEO 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."

Banque de France said it welcomes the implementation of the final component of the tripartite solution that was initiated by French market participants almost three years ago.