ECB Selects STOXX GC Pooling Indices for Euro Secured Market Rate

The European Central Bank (ECB) has opted to utilize STOXX’s EUR GC Pooling index suite, which will utilize the index for its secured market rate with regard to fixed-term deposits in euros, according to a Deutsche Börse statement.

The STOXX EUR GC Pooling indices are calculated by STOXX, an international index provider owned by Deutsche Börse Group – the pooling indices are based on secured euro funding transactions occurring on Eurex Repo’s GC Pooling market, the group’s pan-European marketplace for financing in the secured money market.

At present, nearly all of European interbank financing is executed on a collateralized basis. Subsequently, STOXX and Eurex Repo jointly pioneered the STOXX GC Pooling indices back in 2013 to serve as a market barometer of Europe’s largest secured money market GC Pooling. The STOXX GC Pooling index family aims to provide a transparent and rules-based alternative based on real transactions to unsecured interbank benchmarks, which has served as the traditional method in years past.

According to Hartmut Graf, Chief Executive Officer (CEO) of STOXX Limited, in a recent statement on the selection: “We are very pleased that the European Central Bank is going to use our STOXX EUR GC Pooling indices as it validates our approach and concept. Our transparent, rules-based and reliable benchmark for the interbank market contributes to regain trust in reference interest rates.”

“Our GC Pooling market is a regulated, anonymous, and centrally cleared marketplace with an average daily outstanding volume of more than 150 billion euros. Based on our liquid electronic market, we can jointly provide the transparent benchmarks that participants, regulators and central banks are interested in,” added Marcel Naas, Managing Director of Eurex Repo in an accompanying statement.

Earlier this month, Deutsche Börse Group reported its order book turnover across all asset classes during the month ending August 2015, which rose to $160.0 billion (€142.3 billion).