The Eurex derivatives market is to expand its electronic repo service, admitting more institutions and rolling out new functionality for active delivery and management of general collaterals.
The new Auto-GC Completion functionality, available from 17 December, 2001, will allow participants to select a defined number of specific securities for delivery.
Up to now, large volumes in general collaterals have been traded mainly over the phone or through an intermediary. The new functionality will bring standardisation of the GC markets one step closer, says the exchange.
Eurex Clearing will function as the central counterparty of the buyer and seller of the GC repos.
In a separate announcement, 13 banks have been admitted to trading at Eurex Repo, which was launched in July of this year with eight participants. The exchange says seven further international banks have also decided to trade over the platform and are currently in the connection process.