Unlocking Liquidity with GCplus

Why It Matters

Enhanced collateral flexibility and real‑time margin tools help banks lower funding costs and meet ESG commitments, strengthening overall market liquidity.

Key Takeaways

• High rates and QE end drive collateral optimization urgency.
• LCH’s GCplus streamlines liquidity via single‑use and general collateral.
• Service accesses €1.2 trn daily cleared liquidity for members.
• Green‑bond basket expands eligible collateral, supporting sustainability goals.
• Integrated tools enable real‑time margin forecasting and operational efficiency.

Summary

The video introduces LCH’s GCplus platform, positioned as a liquidity‑unlocking solution for banks and clearing members navigating a high‑interest‑rate environment and the winding down of quantitative easing.

GCplus combines single‑use (single‑sizing) and general collateral services, giving members access to roughly €1.2 trillion of daily cleared liquidity. Participants can raise cash against a broad set of government and supranational securities, and the GCR extension widens eligible collateral to more than 5,000 instruments, including a dedicated green‑bond basket.

By linking GCplus with Euroclear, members can move collateral between cleared and “theared” spaces, trade country baskets, and switch exposure between special and GC securities. LCH also offers digital dashboards that forecast margin needs and track settlement life‑cycles, streamlining allocation and substitution.

These capabilities reduce operational costs, improve margin efficiency, and align collateral usage with sustainability objectives, giving institutions a more resilient liquidity management framework.

Original Description

How are CCPs helping to optimise collateral management and support liquidity in a high interest rate environment? And what benefits does the connection between #LCH RepoClear’s GCPlus and the EuroClear two-party service unlock? To find out, watch Olivier Nin, Head of Product and Head of First Line Risk LCH RepoClear, LCH SA, LSEG

#GCPlus #LCH #LSEG

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