LCH RepoClear SA has announced the launch of its inaugural general collateral triparty green basket. This innovative addition to RepoClear SA’s repertoire builds upon its existing triparty basket repo offerings, a strategic move that follows the successful merger of its two clearing services in July 2023. This integration provides members with an alternative gateway to the world’s most extensive Euro-cleared pool.
The newly introduced sustainable product, known as €GCPlus, comprises Euro-denominated Investment Grade bonds. Under this arrangement, the collateral taker receives bonds that Euroclear allocates within an eligible bond population. The selection process aligns with the issuer-reported green bond reference data, as provided by Bloomberg.
LCH RepoClear Launches Green Basket for Sustainable Finance
LCH SA is committed to further enhancing its €GCPlus product line, demonstrating its ongoing dedication to market innovation. The recent launch includes a GovSSA basket, which clears the largest traded debts in the Eurozone, encompassing Governments, Supranational, Subnational, and Agencies. Additionally, in December 2023, LCH SA introduced a basket consisting of Italian Government bonds, marking its maiden venture into country-level baskets.
Also, Olivier Nin, Interim Head of RepoClear and Collateral and Liquidity Management at LCH SA, expressed pride in supporting members’ sustainability objectives through the introduction of the €GCPlus green basket. He highlighted the company’s ongoing commitment to product adaptation, enabling members to capitalize on cross-margin netting opportunities across special and triparty general collateral activities alongside an expanded choice of liquidity pools.
Moreover, Olivier Grimonpont, Managing Director and Head of Product Management at Market Liquidity Euroclear, expressed satisfaction in collaborating with LCH RepoClear on the launch. Emphasizing their role as a Financial Market Infrastructure, he underscored the importance of working with the market to drive innovative solutions that foster growth and stability.
The introduction of the €GCPlus green basket marks a significant stride towards sustainable finance within the Euro-cleared pool, reinforcing LCH RepoClear SA’s position as a key player in shaping the future landscape of collateral and liquidity management.
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