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06.06.2016 20:08

Moscow Exchange adds securities for GCC repo eligibility

Moscow Exchange announces the launch of new Money Market products.

  • Shares are now eligible for the general collateral certificate (GCC) repo pool;
  • A separate pool has been created for Russian federal government bonds (OFZs), in addition to the GC Bonds pool that was launched in February 2016;
  • The new pools are expected to significantly expand liquidity management opportunities for market participants and to boost trading volumes on the Money Market and the Equity & Bond Market.

Igor Marich, Moscow Exchange Managing Director for the FX and Money Markets, said: "Market participants are now able to pool all major asset classes as per their own trading and liquidity management strategies. GCC repo is a cutting edge money market product combining the reliability of the CCP with efficient collateral management."   

  • Repos with the GC equities pool and the GC OFZs pool will be available from 22 June 2016. Participants can open trading accounts to register assets beginning 20 June.  
  • Three pool types are now offered to participants: GC Bonds (corporate and OFZs), GC Shares and GC Sovereign).

General collateral certificates (GCC) were launched on 29 February 2016. More than 1,350 trades totaling RUB 60.8 billion have been executed to date. Fifty-two participants have connected to trade the product, and six market makers maintain quotes on a daily basis.

Background information:

A general collateral certificate (GCC) is a non-equity security issued by the NCC Clearing Bank against assets contributed by a clearing firm to a combined pool. Cash (EUR, USD and RUB) and any shares and bonds accepted by the NCC Clearing Bank as collateral (OFZs, corporate bonds, Eurobonds) are eligible for the pool. Participants contributing to the pool remain the legal owner of the securities, and are entitled to receive any interest on securities contributed to the pool and to take part in corporate actions. At the same time, participants are allowed to replace securities and use them to settle trades on the Equity & Bond Market and in centrally cleared repos. The new instrument combines the advantages of the two most popular products on Russia's Money Market: centrally cleared repo and GC basket repo with collateral management. GCCs are eligible for anonymous and negotiated repos with terms ranging from one day to three months. GCC repos, Equity & Bond Market transactions and CCP-cleared repos are netted, while all assets in the pool are marked to market in total. This allows participants to reduce their funding costs.

For further information, please contact the Public Relations Department at (495) 363-3232.