News Center
30 Sep 2015

Eurex Group

ECB to use STOXX GC Pooling indices as new euro secured benchmark rate

Deutsche Börse Group welcomes that the European Central Bank (ECB) will use the STOXX EUR GC Pooling index family going forward. According to the central bank, the secured market rate with regard to fixed term deposits in euro will be the STOXX EUR GC Pooling term indices with a comparable maturity, due to the discontinuation of the Eurepo index.

STOXX EUR GC Pooling indices are calculated by STOXX, the global index provider owned by Deutsche Börse Group, and are based on secured euro funding transactions taking place on Eurex Repo’s GC Pooling market, Deutsche Börse’s pan-European marketplace for international financing in the secured money market.

Today, almost all of European interbank financing is executed on a collateralized basis. Therefore, STOXX and Eurex Repo jointly developed the STOXX GC Pooling indices in 2013 as a market barometer of Europe’s largest secured money market GC Pooling. The STOXX GC Pooling index family provides a transparent, rules-based alternative based on real transactions to the traditionally used but unsecured interbank benchmarks.

“We are very pleased that the European Central Bank’s is going to use our STOXX EUR GC Pooling indices as it validates our approach and concept. Our transparent, rules-based and reliable benchmark for the interbank market contributes to regain trust in reference interest rates,” said Hartmut Graf, chief executive officer of STOXX Limited.

“Our GC Pooling market is a regulated, anonymous, and centrally cleared marketplace with an average daily outstanding volume of more than 150 billion euros. Based on our liquid electronic market, we can jointly provide the transparent benchmarks that participants, regulators and central banks are interested in,” added Marcel Naas, managing director of Eurex Repo.

Since November 2014, also a futures contract based on these indices, the EUR Secured Funding Future, has been tradable at Eurex Exchange, the international derivatives market of Deutsche Börse, enabling adequate and capital efficient hedging of collateralized funding cost and investment yields globally for the first time. Together with the existing exchange-listed Eurex interest rate derivatives, Eurex Exchange users are now able to trade the entire secured and unsecured euro interest rate curve.

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