16 Jun 2025
Eurex Repo
Eurex Repo Readiness Newsflash | Eurex Repo Readiness Newsflash | GC Pooling Collateral Concentration Limits for Cash Providers
With this Newsflash, Eurex Repo wants to inform its participants regarding the go-live of the pilot phase for the introduction of certain collateral concentration limits for the benefit of GC Pooling cash providers in the GC Pooling ECB and ECB EXTended basket on 17 June 2025.
As announced via Eurex Repo Circular 03/25, Eurex Repo is introducing concentration limits on EEA Legislative covered bonds for cash providers only in the Euro denominated GC Pooling ECB and ECB EXTended basket. The concentration limits are on a best effort basis during the pilot phase and will introduce an allocation limit of 50 percent of total issued amount (in euro) with a maximum allocation amount of EUR 2 billion per security possible for the Asset Type AT10 (EEA Legislative Covered Bonds).
The initial go-live is a targeted pilot phase covering the Top 10 clients each in the EUR ECB and ECB EXTended basket in a staggered approach based on the participants' average GC Pooling outstanding amount for the whole year 2024.
The pilot phase will last for a period of six months, i.e. until the end of 2025. Following the pilot phase, Eurex Repo will inform separately if the decision has been taken to apply the concentration limits permanently and to all cash providers in the EUR GC Pooling ECB and ECB EXTended basket.
No action needs to be undertaken by any Eurex Repo participant. The participants that are part of the pilot phase will be contacted by their respective sales representatives.
If you have questions or require further information, please contact repo.sales@eurex.com.
Kind regards,
Your Client Services Team
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Recipients: | All Trading Participants of Eurex Repo and Eurex Repo Vendors | |
Target groups: | Front Office/Trading, IT/System Administration | |
Related circulars: | Eurex Repo Circular 03/25 | |
Contact: | repo.sales@eurex.com | |
Web: | www.eurex.com |
