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STOXX launches GC Pooling indices in cooperation with Eurex Repo
STOXX launches GC Pooling indices in cooperation with Eurex Repo
ZURICH, FRANKFURT/MAIN (April 16, 2013) - STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, and Eurex Repo, the leading provider for international financing in the secured money market business today announced the launch of the STOXX GC Pooling index family, including the migration of the existing GC Pooling Indices calculated by Deutsche Börse into the new index family. The STOXX GC Pooling Indices provide a representation of the secured euro funding transactions taking place on the Eurex Repo GC Pooling Market. A unique feature of this index family is the introduction of two funding rates that measure secured interbank funding rates and volumes in the euro zone.
All STOXX GC Pooling Indices are designed to provide transparent, rules-based alternatives to unsecured interbank benchmarks such as LIBOR and EURIBOR/EONIA. The new indices can be used for benchmarking purposes in the money market, and as underlying for financial products. The STOXX GC Pooling Index family will be calculated in euro and will be available end-of-day (CET).
“In light of the recent LIBOR scandal, market participants and regulators globally are looking for a transparent, rules-based and reliable benchmark for the interbank market, based on real transactions,” said Hartmut Graf, chief executive officer, STOXX Limited. “Money market trading volumes have shifted significantly from unsecured to secured markets over the recent years. STOXX and Eurex Repo have thus teamed up to develop the STOXX GC Pooling Indices, which are based on the daily transactions on the regulated GC Pooling market. These innovative indices can contribute to improved trust in reference interest rates.”
“Our electronic GC Pooling market is a regulated, anonymous, and centrally cleared with an average outstanding volume of more than 150 billion euros. With this new index family based on GC Pooling transactions, we can provide the transparent benchmarks that market participants, regulators and central banks are seeking. The indices fulfil major requirements expressed by the working group of 13 central banks established in March 2013 by the Economic Consultative Committee, such as real transactions as well as clear and binding rules,” added Marcel Naas, managing director of Eurex Repo.
The Eurex Repo GC Pooling Market is used as the index universe for the new indices, i.e. STOXX uses trade data reflecting daily trades and binding quotes on the GC Pooling Market.
The indices will be available based on two standardized fixed-income securities baskets available on the GC Pooling Market, namely the ECB basket and the ECB EXTended basket. The following standard terms will be calculated for each basket, respectively: OverNight (ON), TomNext (TN) and SpotNext (SN). Each index will have two versions - volume weighted average rate and total volume. This approach is in line with the central banks’ proposal to implement and use reference rates based on short-term transactions like repos since these exclude counterparty and credit risks. Indices that reflect the entire yield curve are expected to be introduced shortly.
In addition, two funding rates also will be calculated: The STOXX GC Pooling EUR Funding Rate uses broadly defined GC Pooling baskets including re-usable eligible securities with instantaneous refinancing capacity within the framework of ECB/Bundesbank open market operations. The STOXX GC Pooling EUR Funding Rate Volume has the advantage of standardized secured funding. With average daily trading volumes above 20 billion euro, the STOXX GC Pooling EUR Funding Rate Volume is comparable to unsecured interbank lending benchmarks such as EONIA.
The following indices and rates are available:
STOXX GC Pooling EUR ON Index (rebranded)
STOXX GC Pooling EUR ON Index Volume (rebranded)
STOXX GC Pooling EUR Extended ON Index (rebranded)
STOXX GC Pooling EUR Extended ON Index Volume (rebranded)
STOXX GC Pooling EUR TN Index
STOXX GC Pooling EUR TN Index Volume
STOXX GC Pooling EUR Extended TN Index
STOXX GC Pooling EUR Extended TN Index Volume
STOXX GC Pooling EUR SN Index
STOXX GC Pooling EUR SN Index Volume
STOXX GC Pooling EUR Extended SN Index
STOXX GC Pooling EUR Extended SN Index Volume
STOXX GC Pooling EUR Funding Rate
STOXX GC Pooling EUR Funding Rate Volume
Please visit www.stoxx.com for further information.
Andrea Weidemann, email@example.com, Phone: +41 58 399 3568
Heiner Seidel, firstname.lastname@example.org, Phone: +49 69 211 177 64
Note to Editors:
About Eurex Repo
Eurex Repo is the leading provider for international financing in the secured money market business (repo and securities lending). Its highly liquid marketplace combines state-of-the-art electronic trading with the efficiency and safety of Eurex Clearing as well as collateral management and settlement – and is continuously growing. Currently, more than 320 European financial institutions are active in the following markets: GC Pooling®, Euro Repo, Swiss Franc Repo, OTC Spot and SecLend Market.
Find out more at www.eurexrepo.com
Eurex Group is comprised of Eurex Exchange, the International Securities Exchange (ISE), the European Energy Exchange (EEX), Eurex Clearing, Eurex Bonds and Eurex Repo.
Eurex Group is owned by Deutsche Börse AG (Xetra: DB1).
About STOXX Limited
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 6,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global Index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia, and Pacific, the sub-regions Latin America and BRIC (Brazil, Russia, India and China), as well as global markets.
To provide market participants with optimal transparency, STOXX indices are classified in three different categories. The regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global Index Family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name."
The STOXX indices are licensed to over 400 companies around the world as underlyings for Exchange Traded Funds (ETFs), Futures & Options, Structured Products and passively-managed investment funds. Three of the top Exchange Traded Funds (ETFs) in Europe and 30 percent of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world's number three position in the derivatives segment.
In addition, STOXX Ltd. is the marketing agent for the indices of Deutsche Boerse AG and SIX, amongst them the DAX and the SMI indices.
STOXX Ltd. is part of Deutsche Boerse AG and SIX. www.stoxx.com
STOXX does not make any warranties or representations, express or implied with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data. STOXX is not providing investment advice through the publication of the STOXX® indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX on the merits of that company. Financial instruments based on the STOXX® indices are in no way sponsored, endorsed, sold or promoted by STOXX.
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