€GC

€GC is a centrally-cleared triparty repo service for LCH.Clearnet Ltd

LCH.Clearnet Ltd is one of Clearstream’s CCP partners. Clearstream clients who are also clearing members can use the Global Liquidity Hub’s full suite of automatic allocation, optimisation and substitution services to cover their exposures at LCH.Clearnet via the €GC service.

€GC clients benefit from anonymous trading thanks to standardised and liquid GC baskets. LCH.Clearnet nets all open trades in a basket, irrespective of the term, once per day. This settlement netting removes the need to deliver collateral for each trade executed against other CCP participants.

The posting of collateral is settled in Clearstream. Clearstream’s triparty auto-allocation tool enables clients to optimise their cash and collateral management by using a single standardised settlement process.

LCH.Clearnet reuses the collateral it receives to ensure anonymous delivery between counterparties. The counterparty receiving collateral from LCH.Clearnet can in turn reuse it again for further triparty transactions in Clearstream.