Select Invest - Secured Funding for Buy-side Clients

Eurex Repo, Eurex Clearing, and Clearstream Banking have expanded the existing, successful GC Pooling Market to include a new segment, Select Invest. This allows bank clients such as corporations and insurance companies to also benefit from the advantages of secured funding.

Both the trading and clearing architecture, and the state-of-the-art securities management functionality, are tailor-made for the needs of this client group.

In contrast to the anonymous interbank market, Select Invest’s bilateral trading allows banks and their buy-side clients to continue their existing business relationships. Select Invest clients can act as net cash providers to banks quickly and easily, benefiting from the advantages of trading through a clearing house. Cash taker transactions are allowed if the settlement amounts are below or equal to the sum of the settlement amounts of the cash provider transactions. The bank collateralizes the borrowed funds using ECB-eligible securities.

Trading Hours

07:30 - 18:00 Frankfurt am Main time, ON deadline 14:00 Frankfurt am Main time 

Contract Size

Minimum 1 Million CHF, EUR, GBP, USD

Novation by Eurex Clearing

Cash Pre-Funding Necessary

Advantages for corporate clients:

• Secured electronic cash trading denominated in euros
• Fixed income securities and equities used as collateral for the amounts invested
• Flexible terms from overnight to 24 months
• Central counterparty settlement via Eurex Clearing minimizes trading risk
• Business relationships with several preferred banks can be continued under the Eurex Repo participant agreement
• Automatic securities allocation and management at Clearstream
• Free reports for tracking trade settlement
• No direct fees charged by Eurex Repo and Eurex Clearing

Advantages for banks:

• Use of the existing GC Pooling infrastructure for client business
• Easy expansion of product portfolio for corporate clients
• Ability to reinvest borrowed funds directly and immediately in the GC Pooling interbank market
• Balance sheet relief thanks to ability to net repo transactions from Select Invest and the GC Pooling interbank market and transfer of counterparty risk to the central counterparty

Select Invest participants

Please find here the current Participant List Repo and GC Pooling with a summary by markets.

Participation

Buy-side clients that are domiciled in the European Union or Switzerland can apply to participate. The following steps need to be taken:

• Apply to participate in Select Invest
• Set up web based access to the Eurex Repo trading system
• Apply for a Eurex Clearing repo license
• Sign Clearstream Banking agreements to open an account for cash and securities settlement
• Connect to Deutsche Börse’s reporting systems via the Internet