Eurex Repo, member of Deutsche Börse Group, has expanded its existing, successful interbank markets to address buy-side clients. In contrast to the anonymous interbank markets, the customized buy side trading licenses offer bilateral trading. This 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. This specific license offers restricted trading opportunities and therefore enables simplified access conditions for buy-side customers.
Select Finance, another joint initiative of Eurex Repo and Eurex Clearing, will provide access to secured funding (GC Pooling) and securities financing (Repo and SecLend Market) in one single trading and clearing permission. Select Finance clients will have direct access to Eurex Clearing and need to fulfil all admission requirements. This can be achieved by signing an agreement with a clearing agent who will provide transaction, cash and collateral management services.
The Specific Lender trading permission supports the relationship between beneficial owners and agent lenders. It enables securities lending and borrowing transactions for loans versus non-cash collateral. The restricted trading possibilities enables simplified admission requirements e.g. no requirement to pay a clearing fund contribution or margins. The prerequisite is a collateral pledge model with a Triparty Collateral Agent. It cannot be combined with other Clearing Licenses (e.g. GC Pooling). However, an application as Specific Lender is possible in connection with a Select Invest trading permission.