Principles
The preference towards limiting credit risk exposure is leading to an increase of secured money market transactions.
GC Pooling® is a cash-driven general collateral market of Eurex Repo® and offers an 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 GC Pooling® is the re-use possibility of received collateral for further money market transactions and refinancing within the framework of Bundesbank 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.
GC Pooling® was developed jointly by Eurex Repo, Eurex Clearing and Clearstream Banking 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.
The different standardized baskets allow for tailored secured funding activities.
Major Advantages at a Glance
Trading
- Secured Euro and U.S. Dollar cash funding collateralized by unique, harmonized baskets
- Cash-driven General Collateral (GC) trading on an open order book basis
- Two fixed income baskets comprise approximately 8,000 or more than 23.000 ECB/Bundesbank-eligible securities respectively
- One equity basket comprises the top 50 selection of the HDAX®
- Multiple terms: OverNight, TomNext, SpotNext, OneWeek Tender, SpotTerm and FlexTerm
- Anonymous trading via Eurex Clearing stepping in as central counterparty
Clearing as Central Counterparty
- Minimize risk through the use of Eurex Clearing as central counterparty
- Netting at clearing level with Eurex Clearing delivery management
- Balance sheet netting due to central counterparty
Specifications
 | | | |
| Terms | Trade day | Settlement front leg | Settlement term leg |
| EUR GC Pooling OverNight (ON) | T | T via RTS | T+1 in SDS1 |
| EUR GC Pooling Tomorrow Next (TN) | T | T+1 in SDS1 | T+2 in SDS1 |
| EUR GC Pooling OneWeek Tender | T | T+1 in SDS1 | T+X in SDS1 |
| EUR GC Pooling SpotNext (SN) | T | T+2 in SDS1 | T+3 in SDS1 |
| EUR GC Pooling Spot Term (S FORWARD) | T | T+2 in SDS1 | T+X in SDS1 |
| EUR GC Pooling Flex Term | T | T+X in SDS1 | T+Y in SDS1 |
| USD GC Pooling Tomorrow Next (NT) | T | T+1 in RTS | T+2 in RTS |
| USD GC Pooling SpotNext (SN) | T | T+1 in RTS | T+2 in RTS |
| USD GC Pooling Spot Term | T | T+2 in RTS | T+X in RTS |
| USD GC Pooling Flex Term | T | T+X in RTS | T+Y in RTS |
RTS = Real Time Settlement; SDS1 = Same Day Setttlement
Trading hours
Pre-trading phase: 07.00 - 07.30 CET
Main trading phase: 07:30 to 18:00 CET
Cut-Off Time for Overnights
Euro GC Pooling: Overnight Repo internal (Settlement within Clearstream): 16:00 CET
USD GC Pooling: Overnight trading is currently not possible
GC Pooling Equity: Overnight: 15:00 CET
Contract Size
Minimum EUR 1 Million for GC Repo
