The preference towards limiting credit risk exposure is leading to an increase of secured money
market transactions.
Euro GC Pooling® is a cash-driven general collateral segment of Eurex Repo and offers a unique
combination of collateralized money market trading with the efficiency and security of Eurex
Clearing AG’s central counterparty. It is easy to trade extremely large tickets and deals can be
seamlessly completed and then processed automatically without any issues over credit or security
allocation.
The compelling advantage of Euro GC Pooling® is the re-use possibility of received collaterals for
further money market transactions and refinancing within the framework of ECB open market
operations. The OneWeek Tender term with flexible value dates for term legs enables participants
to utilize surplus liquidity resulting from the European Central Bank tender in an efficient manner.
Euro GC Pooling® was developed jointly by Eurex Repo GmbH, Eurex Clearing AG and Clearstream
Banking AG and launched in March 2005 with the expressed purpose of delivering all the recognizable
advantages of electronic trading, through a well-regarded Clearing House in combination with a
centralized collateral management system.
Major Advantages at a Glance
Euro GC Pooling® – Development of Outstanding Volume* from March 2005 to February 2008
(EUR in Millions)
Euro GC Pooling®
Trading
Clearing as
Central Counterparty
Collateral
Management
with
Fully-Automated
Allocation
• Secured euro cash funding collateralized by unique, harmonized baskets
• Cash-driven GC trading on an open order book basis
• Euro GC Pooling® Basket comprises approximately 8,000 ECB/Bundesbank-eligible
securities
• Multiple terms: OverNight, TomNext, SpotNext, OneWeek Tender, SpotTerm and
FlexTerm
• Anonymous trading via Eurex Clearing AG stepping in as central counterparty
• Minimize risk through the use of Eurex Clearing AG as central counterparty
• Netting at clearing level with Eurex Clearing AG’s delivery management
• Zero regulatory capital cost