LCH’s tri-party basket repo clearing service
€GCPlus is LCH’s tri-party basket repo clearing service, enabling members to pool general collateral trades of highly rated sovereign debt and agency issuers, as well as other investment-grade bonds that meet eligibility criteria from two baskets of debt.
Clearing at €GCPlus enables members to increase their capital and operational efficiencies and better manage their euro cash liquidity – which is especially important given the ongoing impact of regulatory capital requirements.
When clearing at €GCPlus, members can pool collateral of specific criteria into the following baskets:
- Basket 1 (LCR equivalent): contains a range of debt from European Central Bank (ECB) liquidity classes (L1A, L1B and L1C) with a rating higher than A- for government bonds and AA- or greater for other debt instruments
- Basket 2 (ECB restricted): contains a broader-based set of securities with issuance ratings greater than BBB-
By clearing through €GCPlus, you’ll benefit from a Eurozone solution that provides the risk-management expertise and scalable infrastructure of a market leader in fixed income clearing.
Clearing at €GCPlus begins with trading eligible cash bonds at an approved execution venue.
Cash lenders or borrowers can transact anonymously with each other via leading electronic platforms, including BrokerTec, MTS or Tullett Prebon. They may also clear bilaterally arranged trades via ETCMS.
Trades that are matched on these platforms are then sent to LCH SA for registration and clearing. Euroclear will allocate collateral for timely and accurate delivery versus payment.
Clearing at €GCPlus means you’ll enjoy automated collateral management provided by Euroclear and the ability to refinance at Banque de France.
Members have the flexibility to operate through either Euroclear Bank or a Euroclear France account.
The baskets of eligible debt securities acceptable for clearing at €GCPlus
€GCPlus has a robust and proven risk and default management framework.
The cost of clearing with €GCPlus
Everything you need to know about clearing at €GCPlus
Questions about €GCPlus? Don’t hesitate to get in touch
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