TreasurySpring, the globally-accessible cash investment platform, has recently announced a collaboration with Eurex, an operator of a Repo Trading Venue and a Central Counterparty (CCP), and Clearstream, a provider of post-trade services, both fully owned by Deutsche Börse Group.
The collab reduces operational and time barriers, enabling direct access to centrally cleared repo markets via GC Pooling, Eurex’s and Clearstream’s joint developed “standardised secured funding offering, through TreasurySpring’s investment platform.”
Repo funding has to date largely been the preserve of wholesale banks and major financial institutions, “using collateral to reduce credit risk.”
Building on the collab, TreasurySpring introduced next-day Fixed-Term Funds (FTFs) via its new One+ product – euro-denominated instruments that are said to be “backed by centrally cleared overnight repo with one-day maturity.”
These funds combine next-day liquidity with the transparency and risk management advantages of central clearing and collateralisation using European Central Bank-eligible High-Quality Liquid Assets. The offering is anchored by the “€200 billion-plus daily volume of the GC Pooling market and participation from over 160 sell-side and buy-side institutions.”
GC Pooling offers access to standardised funding by integrating electronic trading by Eurex Repo, central clearing by Eurex Clearing as well as tri-party collateral management and settlement by Clearstream. Since its introduction in 2005, GC Pooling has become established “as the European benchmark for efficient cash and collateral management.”
This initiative contributes to resilience and diversity in European funding markets by enabling “the mobilisation of unlevered and uncorrelated pools of cash for corporate treasurers, financial institutions, and private funds.”
The collab combines the benefit of Eurex’s Select Invest framework, designed to extend “cleared-repo access to cash investors and TreasurySpring’s FTF suite, enabling investment in repo without the need to build financial infrastructure.”
Kevin Cook, CEO and Co-founder, TreasurySpring said that this partnership means we can now deliver “access for our investors to one of Europe’s deepest and safest wholesale cash investment markets.”
For counterparties, it unlocks diversified funding sources, within a capital efficient ecosystem. While for money markets as a whole, it “marks a meaningful step towards a more diverse, more collateral-based and less maturity-transformed funding landscape.”
He added that they are continuing to “see strong appetite for this capability from both sides of the market, and its launch represents another first for TreasurySpring as we advance our mission to build the world’s leading capital markets treasury investment platform.”
Michael Jahn, Product Lead Repo D2C at Eurex commented that their Select Invest framework was designed to give “a range of investors access to the safety and efficiency of cleared repo.”
Working cooperatively with TreasurySpring helps realise “that vision by connecting a pool of unlevered institutional cash to the cleared market.
Marton Szigeti, Head of Collateral, Lending & Liquidity Solutions at Clearstream, has noted that their tri-party collateral management services help clients to make the “most of their assets.”
They are pleased to welcome Treasury Spring to GC Pooling Select Invest, improving “access to this liquid market for institutional cash investors.”