Eurex Repo sets new records

Frankfurt/Main - 18 December 2006

Record high outstanding volume in November at €93 billion (US$ 121.73 billion) /

Product range expanded to include further European government and corporate bonds

Eurex Repo, the electronic repo market of the international derivatives exchange Eurex, continues to grow in the first eleven months of 2006: average outstanding volume reached a new peak of more than € 93 billion (US$ 121.73 billion) at the end of November, beating the figure recorded at the beginning of the year by 18 percent. The Euro repo market saw particularly strong growth during this period: with a daily outstanding volume of over € 55 billion (US$ 71.99 billion), this market set a new record in November, up by nearly 80 percent on the start of the year. In addition, ten new participants were admitted to the Euro repo market in 2006, including 7 international institutions. This brings the total number of participating institutions to 45. Average outstanding volume on the CHF repo market totaled CHF 63.7 billion (€ 42.5 billion / US$ 55.63 billion) in November.

Euro GC Pooling, which was launched in March 2005, has played a key role in the success of the Euro repo market. This product is being enhanced in cooperation with Clearstream Luxembourg and Eurex Clearing AG, meaning that the international securities held in custody with Clearstream Luxembourg should also be available for Euro GC Pooling transactions from mid-2007 onwards. This offering is aimed primarily at international participants who use Clearstream Luxembourg as custodian for their securities.

Eurex Repo also expanded its product range on the Euro repo market by adding new baskets of European government and corporate bonds in the middle of December. This is the first time that corporate bonds have been available as collateral in electronic repo trading using a central counterparty. The implementation of the Basel II guidelines into national law in 2007 means that the financial industry expects to see an increased demand for collateralized financing alternatives, a development which is likely to benefit repo trading on the Eurex Repo markets.

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