Eurex market briefing: term business stays elevated over year-end

During October the positive trend continued and the overall term business remained on high level and increased to €253.3 billion compared to September, writes Frank Gast, managing director and member of the Management Board at Eurex Repo, in a market briefing. On a year to year comparison the overall term adjusted volume increased in October 2022 by 31.5% against October 2021 across all markets, with GC Pooling increased by 22.0% and Repo Market increased by 35.7%.

As already started in September the increasing traded volume for term trades over year end continued in October. Members already rolled their positions over year end, especially in German and French government bonds Special repo, but also in GC Pooling to ensure liquidity.

Average traded volumes increased by 52% across all markets compared to October 2021, with a strong increase in Special & GC repo +63% (GC Pooling +31%). The spread between GC Pooling ECB and EXT basket widened during October up to 6 basis points for short term periods up to 2 weeks.

The technical migration of GC Pooling from Xemac to Cmax in Clearstream’s infrastructure took place on 22 October with more than 140 clients who migrated. However, due to complex changes, both at Clearstream and on the client side, outstanding GC Pooling volume dropped in the last week of October about 17%, but volumes started to rebuild early November again.

The total traded volume of EU bonds at Eurex Repo reached a new record high of almost €10 billion.

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