Record volume in the Swiss franc repo market

At end-2005, the Swiss franc repo market saw an upswing and achieved a record volume of CHF 90 billion in December. The important interbank market achieved a record volume of CHF 55 billion; the other CHF 35 billion were gained from bilateral trading with the Swiss National Bank. The acquisition of new national and international member banks kept pace with this positive development.

By the end of the year, the number of actively participating banks had increased to 136. In connection with a further expansion of the business in the securitised money market, Eurex Repo introduced a foreign-currency segment with EUR, USD and GBP while retaining its clearing and settlement structures in the Swiss repo market. This offers additional opportunities for Swiss banks in particular, who can manage their foreign-currency holdings in the above-mentioned currencies via the CHF repo market without having to pay supplementary membership fees.

These additional sources of revenue in the three currencies require very little or no operational resources, since the tried and tested SIS Tri-Party Service can be expanded with no further use of resources and trading can be carried out under existing agreements.

Source: Eurex Zurich Ltd.


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