November 2011
Beginner
335 pages
9h 33m
English
GC trades go through Eurex Repo. Europe comprises a series of rates that govern their operations. Much has been written about the channel or corridor of rates that governs their markets. The Main Refinancing Operation (MRO) provides weekly liquidity based on minimum bid rates to the banking system. The current rate is 1 percent. This fixed rate has been higher than EURIBOR and GC rates for 2010 (ECB yearly report 2010). The Marginal Lending Facility provides overnight credit to banks. This rate is currently 1.75 percent and the Deposit Facility is 0.25. Factor in the base rate at 0.12 presently, and the corridor is established. Minimum bid rates normally establish Europe's Eurepo rate or deposit rate.
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