- OTC Clearing and Repo volumes continued their upward trend
- Repo Market volumes nearly doubled to €209.8 billion year-on-year (yoy)
Eurex Repo recorded a major increase in GC Pooling volumes in February, up 43% to €111.9 billion ($119.0bn), whereby average daily volume in the repo market nearly doubled to €209.8 billion. The total average daily term-adjusted volume grew by 67% in February.
| Repo: Average daily term-adjusted volume on Eurex Repo | February 2023 | February 2022 | Change |
| GC Pooling (€ billion) | 111.9 | 78.4 | +43% |
| Repo Market (€ billion) | 209.8 | 114.6 | +83% |
| Total (€ billion) | 321.7 | 193.0 | +67% |
*GC Pooling includes all currencies
March 8 update: in a market briefing, Frank Gast, managing director and member of the Management Board at Eurex Repo writes –
February continued our market’s very strong start of the year with an increase of 127% in average traded volumes across all markets compared to February 2022. The term-adjusted volumes increased by +66.7% across all market segments in February, reaching around €321.7 billion compared to €193 billion in February 2022. We also saw strong growth volume growth in our Dealer to Client business, with YTD outstanding volumes more than double compared to 2022.
February volumes are particularly highlighted by a sharp increase in the GC Pooling average traded volume, reaching 38 billion compared to 8.3 billion in February 2022. The increasing number of participants actively trading in this market also supported the rising volumes in GC Pooling. Indeed, as the market absorbed recent ECB decisions and policy announcements, EUR GC Pooling saw the return of terms trading throughout the curve rather than being condensed into one-day terms.
Therefore, in addition to already strong short-dated volumes from one-week to one-month terms, we saw, throughout February, highly animated nine and twelve months GC Pooling terms trades, with a range of participants in both the ECB and EXT ECB baskets. Interestingly, we saw very little spread between the baskets in these long-dated terms.
Our Repo Market also continued its strong growth in GC & Special, with an 83% increase in the average term-adjusted volume compared to the previous year. During the month, we noticed that core and semi-core Euro Governments bonds were actively traded one week to one month, with three-month forward trades continuing in German (Bunds traded volume in February +54% compared to February 2022) and French govts March – June. The peripheral Euro government bonds were extremely active from one week to one month term, particularly sub ten-year Spanish and sub ten-year Italian paper. SSA’s continued to be popular from three months term down to one day and, increasingly, open term.
EU GC and Specials continued to rise in volume (+54% compared to January) and in the number of executions, demonstrating the further development of this asset class.