Frank Gast, managing director and member of the Management Board at Eurex Repo, provided an update on market events and figures for March, when the European Central Bank raised the key interest rates by 0.5 percentage points, despite the recent tensions in the financial markets. This was the sixth interest rate step since the start of the interest rate turnaround in July 2022.
The same month, the collapse of Silicon Valley Bank (SVB) and Signature Bank in the US and the run on Credit Suisse (CS) in Europe raised concerns about a potential banking crisis. However, the financial markets have since stabilized, and two weeks later, the acute phase of financial stress seems to have passed.
Eurex Repo’s average term-adjusted volume in March 2023 was €296.5 billion, compared to €160.7 billion in March 2022, representing an increase of 84.5%. The GC Pooling Market saw a significant increase in volume, with €114.9 billion in term-adjusted volume in March 2023 compared to €51.2 billion in March 2022, a growth of 124.5%. The Repo Market also grew, with €181.6 billion in March 2023 compared to €109.5 billion in March 2022, a growth of 65.8%.
Looking at the year-to-year comparison for the first quarter of 2023, Eurex Repo’s average term-adjusted volume was €289.0 billion, compared to €185.4 billion in the same period in 2022, representing a 55.9% increase. The GC Pooling Market grew 58.6%, with €102.9 billion in 2023 (Jan-Mar) compared to €64.9 billion in the same period in 2022. The Repo Market also grew by 54.5%, with €186.2 billion in 2023 (Jan-Mar) compared to €120.5 billion in the same period in 2022.
Furthermore, Eurex Repo’s average traded volume increased significantly in March 2023, with a growth rate of 110.8% compared to March 2022. The GC Pooling Market has experienced exceptional growth with a rate of 317.1%, while the Repo Market has also seen a growth of 39.7%.
Average daily traded volumes in Bund special repo increased by 76% in March 2023 compared to March 2022. For the period January to March 2023, the average daily traded volumes increased by 62%.
Overall, Eurex Repo saw a significant increase in its volume in March 2023 compared to March 2022, driven by strong growth in both the GC Pooling Market and Repo Market. The year-to-year comparison for the first quarter of 2023 also showed a notable increase in volume across all markets, indicating continued growth in the repo market.