RepoThe destination of choice?

Euroclear Collateral ConferenceMay 2015

Repo: A destination for banks and corporates

Corporate treasurers

• Looking to decrease direct exposure on banks

• Looking to create collateral pools for derivatives activity

Banks need to:

• Have alternative sources of funding

• Prove they have access to long term funding

• Comply with NSFR as this favours corporate funding sources

Repo is the natural meeting place

A clear route through the GMRA

Euroclear has launched RepoAccess, a service that makes Repos easier by reducing the effort needed to set up a GMRA

Our aim is to create a community of banks and corporates centered around the GMRA

Why the GMRA?

The GMRA is the market standard agreement under which most international repo activity takes place. It provides:

• Protection: ►Tried and tested (Lehman, MF Global)►Robust legal framework: Well understood in major

markets

• Reliability: Well establised and widely

The GMRA opens the door to European funding markets but can be a challenge to implement.

5

Exit PointsRepoAccess - Easier access for Corporates

• Agree to a GMRA• Euroclear sets it up

when needed RepoAccess Community

The GMRA

• One-time review to get access to all members of the community

• Quick, seamless setup with members of the Community

How does it work?

• You agree to a standard GMRA – the ‘RepoAccess’ GMRA

• You give us a mandate to set up this GMRA with any member of the RepoAccess community

• We set up the RepoAccess GMRA between members when requested

RepoAccess: the destination of choice

• Rapid turnaround to set up a GMRA

• Access to a community of counterparts

• The benefits of the market standard agreement for repos, backed by decades of use

• Flexibility to opt for bilateral activity at any time

• Minimal administrative and legal workload

Questions

• How is the GMRA a barrier to connecting with the repo market?

• What kind of support would make a difference?