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Firms launch new tri-party repo CCP
12 March 2014
LCH.Clearnet has collaborated with Euroclear and Banque de France
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.