- Launch of next-day Fixed-Term Funds will unlock new pools of institutional cash to flow directly into cleared repo markets
- Broadened access strengthens transparency and resilience in European funding markets
TreasurySpring will provide direct access to centrally cleared repo via its investment platform by tapping GC Pooling. This can be expected to reduce operational and time barriers. GC Pooling integrates 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 greater resilience and diversity in European funding markets by enabling the mobilization of unlevered and uncorrelated pools of cash for corporate treasurers, financial institutions, and private funds. The collaboration combines the benefit of Eurex’s Select Invest framework, purposefully designed to extend cleared repo access to cash investors and TreasurySpring’s FTF suite for investment in repo without the need to build any financial infrastructure.
Kevin Cook, CEO and co-founder at TreasurySpring, said in a statement: “This partnership means we can now deliver proprietary access for our investors to one of Europe’s deepest and safest wholesale cash investment markets. For our counterparties, it unlocks a new universe of diversified funding sources, within a capital efficient ecosystem. While for money markets as whole, it marks a meaningful step towards a more diverse, more collateral-based and less maturity-transformed funding landscape.
“We 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 for Repo D2C at Eurex, said in a statement : “Our Select Invest framework was designed to give a wider range of investors access to the safety and efficiency of cleared repo. Partnering with TreasurySpring helps realize that vision by connecting a new pool of unlevered institutional cash to the cleared market.
Marton Szigeti, head of Collateral, Lending & Liquidity Solutions at Clearstream, said in a statement: “At Clearstream, our highly efficient and effective tri-party collateral management services help our clients to make the most of their assets.”