Eurex Launches New Green Bond Basket in Its GC Pooling Segment

Eurex, Europe's leading derivatives exchange, launched an additional Green Bond Basket in its GC Pooling segment on 29 April 2024. This will increase liquidity and efficiency in the European repo market for green bonds, thus strengthening the green bond segment.

The new basket complements three other Green Bond Baskets that were already launched in the Special and GC Repo segments in 2020 and 2021.

The launch of the new GC Pooling Green Bond Basket allows clients to leverage EUR, USD, GBP, or CHF cash against a selection of 80 green bonds issued by sovereign, and supranational entities across seven countries within the European Economic Area. In turn, collateral received from the basket can be re-used for Eurex Clearing margin with Clearstream TriParty, leveraging the established GC Pooling market design to mitigate the risk of transaction failures.

Carsten HillerCarsten Hiller, Head of Repo Sales Europe, at Eurex: "The new offering underpins Eurex's ESG-related initiatives and showcases its strong efforts to support the development of a well-functioning holistic eco-system for green bonds. We believe that this basket will facilitate greater involvement from market participants, enabling them to efficiently manage collateral while promoting green initiatives."