Secured funding makes derivatives leap

摘要

European dealers and money managers seeking hedging tools that reflect the rise in collateralised financing will soon have new instruments at their disposal with derivatives referencing secured euro funding rates currently being prepared in both listed and OTC formats. Eurex is planning a September 10 launch for one-month euro secured funding futures. The contracts are linked to short-term transactions in the GC Pooling repo market. The trades represent funding collateralised by standard baskets of over 7,500 securities eligible for the ECB's open market operations. The latest money market derivatives will provide asset managers with the first listed tools to replicate euro secured funding costs - something currently only available through OTC unsecured proxies.