- LCH RepoClear SA has launched a new €GCPlus General Collateral clearing offering under the existing triparty basket repo product
- Delivered in collaboration with Euroclear, the EUR denominated Investment Grade green bonds basket is based on market recognized ESG securities reference criteria
- The offering supports LSEG’s commitment to being a strategic enabler of sustainable growth through the provision of critical market infrastructure, data and analysis
LCH RepoClear SA announced that it has launched its first general collateral triparty green basket. The new basket expands on RepoClear SA’s existing triparty basket repo offering, following the merger of its two clearing services in July 2023 providing members alternative access to the world’s largest Euro cleared pool.
The new sustainable €GCPlus offering comprises EUR denominated Investment Grade bonds, where the collateral taker receives bonds allocated by Euroclear within an eligible bond population, aligned with the issuer-reported green bond reference data provided by Bloomberg. The net proceeds of eligible bonds are anticipated to be used by the issuer to finance projects or activities that promote environmental-related activities, including climate change mitigation.
LCH SA continues to expand its €GCPlus product offering through the launch of additional baskets. This includes a GovSSA basket (Governments, Supranational, Subnational and Agencies basket) clearing the largest traded debts in the Eurozone, and a basket comprising Italian Government bonds which was launched in December 2023, its first country level basket.
Olivier Nin, interim head of RepoClear and Collateral and Liquidity Management, LCH SA, said in a statement: “We are proud to support our members’ sustainability objectives with the launch of the €GCPlus green basket. Together with the additional baskets launched through our existing offering, we continue to adapt our products so our members can benefit from further cross margin netting opportunities across their special and triparty general collateral activity in addition to a wider choice of liquidity pools”.
Olivier Grimonpont, managing director and head of Product Management, Market Liquidity at Euroclear, said in a statement: “In our role as a Financial Market Infrastructure, we work with the market to help advance important innovative solutions that will support growth and stability.”