LCH RepoClear SA, an LSEG business, announces today that it has launched the first tripartite green basket of general collateral.
The new basket expands on RepoClear SA’s existing tripartite repurchase basket offering following the merger of its two clearing services in July 2023, providing members with alternative access to the world’s largest euro clearing pool.
The new €GCPlus sustainable offering includes Euro-denominated investment grade bonds, where the underwriter receives bonds allocated by Euroclear to a population of eligible bonds, aligned with the issuer-reported green bond benchmarks provided by Bloomberg.
LCH SA continues to expand its €GCPlus product offering through the launch of additional baskets. This includes a GovSSA basket (basket of governments, supranationals, subnationals and agencies) that clears the largest marketable debts in the Eurozone and a basket of Italian government bonds issued in December 2023, the first basket at country level.
Olivier Nin, Interim Head of RepoClear and Collateral and Liquidity Management, LCH SA commented:
“We are proud to support our members’ sustainability goals with the launch of the €GCPlus Green Basket. Along with the additional baskets launched through our existing offering, we continue to tailor our products so that our members can benefit from further cross-margin netting opportunities across their dedicated and tri-party general collateral business, as well as a wider selection of liquidity groups’.
Olivier Grimonpont, Managing Director, Head of Product Management, Market Liquidity Euroclear said:
“We are very pleased to have supported LCH RepoClear in the launch of a new green basket on EuroGCPlus. In our role as Financial Market Infrastructure, we work with the market to help drive important innovative solutions that will support growth and stability.”