€GCPlus

Taking secure financing to the next level

Euroclear and LCH.Clearnet combining best-in-class collateral and risk management for the benefit of the interbank market.

€GCPlus, a central clearing service for the triparty repo market, is offered by LCH.Clearnet SA in collaboration with Euroclear and Banque de France.

The service is designed to help fixed income trading desks, treasurers and other market participants manage Eurosystem-eligible collateral efficiently and to generate liquidity in a cleared environment.

At the same time you can benefit from balance sheet netting and regulatory capital efficiencies.

€GCPlus creates a community of trading firms across multiple settlement platforms.

Clients of Euroclear Bank and ESES CSDs can trade baskets of collateral regardless of their choice of settlement platform while still benefiting from the services of a CCP. 

The best of LCH.Clearnet and Euroclear

The service brings to the market the combined expertise of LCH.Clearnet and Euroclear, two world leaders in their field.

LCH.Clearnet – world renowned in risk management

  • Has launched €GCPlus – a low risk, centrally-cleared service for the triparty repo market.
  • Cash funding is collateralised by two standard ECB-eligible GC baskets – including an equivalent Basel III LCR basket.
  • Both counterparties benefit from reduced regulatory capital costs due to LCH.Clearnet’s role as the CCP.

Euroclear – leading edge collateral management

  • Has created a single interoperable collateral infrastructure between Euroclear’s ICSD and our CSDs in Belgium, France, the Netherlands. You can hold your securities in either location and settle DVP in commercial or central bank money.
  • Full suite of integrated triparty services, including automatic screening and selection of eligible collateral per basket, automatic substitution and re-use.

The resulting service provides cash investors and borrowers with full STP processing – from trading and clearing through to collateral management, settlement and refinancing.

The €GCPlus service offers

  • access to €GCPlus cleared products
  • safe, anonymous environment
  • full suite of triparty services including re-use
  • hold securities in Euroclear Bank or an ESES CSD

If you are a cash borrower

  • You can access a wider pool of liquidity and augment your funding sources in Euroclear triparty with highly liquid €GCPlus cleared products.
  • Optimise your collateral usage across business lines – €GCPlus collateral management is seamlessly integrated in your Euroclear triparty activity, including automated substitution and optimisation.
  • Benefit from economies of scale by integrating €GCPlus within your existing Euroclear triparty collateral management.

If you are a cash investor

  • Reach the widest range of domestic and international financial institutions and invest excess cash against Eurosystem-eligible assets.
  • Let Euroclear automate your collateral operations – benefit from our fully STP triparty collateral management services.
  • Hold your securities and manage cash flows in either Euroclear Bank or one of the ESES CSDs.
  • Refinance €GCPlus assets to a wide range of counterparties in Euroclear’s triparty environment or to Banque de France. 

€GCPlus clearing participants

Electronic platforms

ICAP, MTS, Tullett Prebon

Trading

  • anonymous cash-driven trading via e-platforms
  • trading of two baskets covering a large set of ECB-eligible securities

LCH.Clearnet

Clearing

  • intermediation of the CCP reducing the regulatory capital cost
  • exposure netting at clearing level

Euroclear Bank and ESES CSDs

(Belgium, France, the Netherlands)

Collateral Management
Settlement
Custody

  • automated collateral management provided by Euroclear in a truly interoperable collateral management environment
  • full possibility of collateral re-use

National Banks

(Banque de France...)

Central Bank

  • refinancing with Eurosystem and, initially, with Banque de France
  • expansion to other central banks is ongoing

LCH.Clearnet €GCPlus baskets cleared by LCH and managed in triparty

Two Collateral Baskets

Baskets based on liquid income instruments eligible for the Euro system's monetary operations

Basket 1: LCR equivalent (3000 ISINs)

Based on European Central Bank (ECB) High Quality Liquid Assets which support Liquidity Coverage Ratio (LCR) principles


Basket 2: ECB restricted (6000 ISINs)

covers an extended spectrum of ECB eligible securities


Basket 1 - LCHC EURO-GCPLUS LCR

Equivalent - XS0708254148

  • High Quality Liquid Assets
  • ECB liquidity classes L1A, L1B, L1C
  • Issuance rating higher than A- (govies) AA- (other)

Basket 2 - LCHC EURO-GCPLUS ECB

Restricted - XS0708254817

  • Larger spectrum of ECB elligible Assets
  • ECB liquidity classes L1A, L1B, L1C, L1D
  • Issuance rating higher than BBB-

Contact us

Euroclear

Olivier de Schaetzen

Head of Product Solutions - Collateral Management

Phone: +32 (0)2 326 2884

Gösta Feige

Director, Product Solutions, Collateral Management

Phone: +352 (0)2748 5070 

Simon Mees

Product Solutions, Collateral Management

Phone: +32 (0)2 326 1626


LCH.Clearnet SA

Nigel de Jong

Group Head of Fixed Income Client Management, Marketing & Sales

Phone: + 44 (0)20 7426 7273