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STOXX GC Pooling EUR Deferred Funding Rate to underlie new Eurex derivative contact

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The STOXX GC Pooling EUR Deferred Funding Rate has been licensed to derivatives exchange Eurex to serve as the basis for a futures contract.

The STOXX GC Pooling Indices provide a representation of the secured euro funding transactions taking place on the Eurex Repo GC Pooling Market, and are designed to provide transparent, rules-based alternatives to unsecured interbank benchmarks.
 
The STOXX GC Pooling EUR Deferred Funding Rate captures centrally cleared one business day transactions for the broader Eurozone, and is thus comparable to the unsecured EONIA benchmark.
 
“Since the middle of 2012, trading volumes in the secured European interbank funding market as measured by the STOXX GC Pooling EUR Deferred Funding Rate have significantly overtaken those in the unsecured benchmark EONIA,” says Hartmut Graf, chief executive officer, STOXX Limited. “By licensing the STOXX GC Pooling Deferred Funding Rate to Eurex as the basis for a futures contract, market participants can now hedge against fluctuations in Euro secured funding rates and manage secured versus unsecured investment risk.”
 
“With the new One-Month EUR Secured Funding Future, we further complement our interest rate derivatives offering. Market participants will be able to hedge and trade the EUR GC repo interest rate risk outright or against unsecured money market benchmarks for the first time with an exchange-traded futures contract,” says Mehtap Dinc, member of the Eurex executive board. 

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