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GFF

Global Funding and Financing 2 GFF Global Funding and Financing GFF

Global Funding and Financing (GFF) integrates all Deutsche Börse Group’s services around securities financing, funding and management.

Aligning our activities under GFF allows us to better address your new regulatory requirements and to serve your emerging needs in view of trading, risk and liquidity management more efficiently.

GFF makes it easier and more efficient for clients to manage collateral and access liquidity. GFF Global Funding and Financing 3

Overview on GFF Services

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More than 600 international institutions are using our funding, financing and solutions. Thereof more than 450 institutions use our Non-CC P (Central Counterparty) and 150 our CCP-cleared services.

1) Including eTriParty 2) CCP & uncleared, Agency & Principal 3) Baskets / single ISINs 4 GFF Global Funding and Financing Funding solutions

CCP-cleared services

GC Pooling Select Invest Electronic and anonymous cash liquidity trading Electronic and bilateral cash liquidity trading in EUR, USD, CHF and GBP collateralized with in EUR, USD, CHF and GBP. Buyside clients can pre-defined baskets of ECB eligible, non-ECB eligible lend cash to selected banks collateralized with securities and equities. Sell- and buyside clients pre-defined baskets of ECB eligible, non-ECB eligible (via Select ) can benefit from this successful securities and equities. and liquid market for standardized secured funding.

Non-CCP-cleared services

Triparty Repo Service eTriParty Cash liquidity trading in USD, CAD, MXN, UYU, Electronic and bilateral cash liquidity trading in EUR, GBP, EUR, SEK, ILS, NOK, RON, CHF, DKK, CZK, USD, CHF, GBP, AUD, CAD, JPY and DKK collat- ZAR, HKD, SGD, CNY, MYR, AUD, JPY, NZD and eralized with pre-defined fixed income and equity XAU collateralized with pre-defined or customized baskets. Sell- and buyside clients can optimize baskets of fixed income securities, equities or funds. their liquidity management in a transparent, secure Sell- and buyside clients benefit from automated and fully automated way. processes and lower administrative tasks provided by as neutral triparty agent. GFF Global Funding and Financing 5 Financing solutions

CCP-cleared services

Repo Market 20,000 securities comprising European equities, Electronic and anonymous financing in EUR and ETFs and international government, corporate and GBP in two different segments: General Collateral covered bonds. Lenders, who would like to trade (GC) and Special Repo segment. The GC segment anonymously, can benefit from the lending services offers several pre-defined and tailor-made baskets of Clearstream as Agent Lender. of fixed income securities. The Special Repo segment provides securities financing of single bonds. Select Finance This market is available for sell- and buyside clients A trading license to this segment allows access to (access via Select Finance). the GC Pooling and Repo Market. The membership is available for sell- and buyside clients. The linked Seclend Market ISA Direct license requires the involvement Electronic and bilateral marketplace for securities of a Clearing Agent who provides at least the clearing lending & borrowing. Sell- and buyside clients can fund contribution and fulfills the management select the centrally-cleared services for more than bidding obligations on behalf of ISA Direct clients.

Non-CCP-cleared services

Strategic Lending ASLplus Automated Lending ASL and ASL principal This strategic lending service increases lender revenues Clearstream provides automated lending of securities while providing liquidity to the market. Clearstream as lender of last resorts covering account shortage acts as principal in the loan to the lender and takes situations and enhancing efficiency. care on all administrative functions including returns One single contract provides borrowers with access and recalls as well as corporate actions as collateral to a large pool of undisclosed lenders. The auto- agent. are collateralized with bonds rated A+ matic detection of loan requirements is matched with and higher and pledged in favor of the lenders. identified loan supply from lenders.

Strategic Lending KAGplus ASL principal is a unique service that forms part of KAGplus is a lending service of Clearstream’s German Clearstream’s CSD and ICSD services CSD (Central Securities Depository) customized to enabling clients to borrow from or lend a single pool German investment funds and their custodian banks. of securities regardless of their settlement and custody These clients face limitations in their lending activities location. Lenders also benefit from the extended and collateralization possibilities under the German level of associated to a principal structure Capital Investment Code (KAGB – Kapitalanlagege - where Clearstream acts as sole counterparty. setzbuch) and Derivatives Decree. Our German CSD as certified Organized System under KAGB enables both lenders and borrowers to fully comply with regulatory requirements while at the same time maximizing lending activities. 6 GFF Global Funding and Financing Collateral management

Collateral mobilization automated controls designed to help them finance Capital constraints have created new financing different portfolios and asset classes more effectively. challenges and banks are looking to create leaner In addition, our real-time processing engine allows inventory management processes in a bid to maxi- collateral to be managed more effectively across both mize the use of all available asset classes as collat- bilateral and triparty collateral management activities. eral. Clearstream’s real-time collateral management and settlement engine allows counterparties to Collateral efficiency efficiently manage pools of collateral across different Netting and cross-product margining create balance accounts, settlement locations and collateral man- sheet and collateral efficiency for banks. Deutsche agement activities. Clearstream has built partner ships Boerse Group’s integrated product offering helps with electronic trading platforms, central counter- counterparties to create solutions that combine exe - parties, central securities depositories and agent cution, and post-trade services banks, so that customers can cover all their exposures which in turn will allow them to generate balance from one platform. sheet and cost savings from both CCP and non-CCP activities. Collateral optimization Optimization of collateral is an essential part of a banks liquidity management infrastructure. Clearstream’s optimization rules provide firms with Further information

For further information on our funding and financing solutions, please contact: [email protected] Published by Deutsche Börse AG 60485 Frankfurt/Main Germany www.deutsche-boerse.com

September 2017 Order number 2410-4753

Disclaimer Neither Eurex Repo GmbH (Eurex Repo), Eurex Clearing AG (Eurex Clearing), Clearstream Banking S.A. (Clearstream) nor its servants nor agents, is responsible for any errors or omissions contained in this publication which is published for marketing information only and shall not con- stitute investment advice. Any information herein is not intended for solicitation purposes but only for the use of general information for professional clients. Eurex Repo GmbH (Eurex Repo), Eurex Clearing AG (Eurex Clearing) and Clearstream Banking S.A. (Clearstream) offer the described services of this newsletter directly to their partici - pants. Those wishing to trade in any products available on the Eurex Repo marketplace or to offer and sell any such products to others should consider both their legal and regulatory position in the relevant jurisdiction and the risks associated with such products before doing so.

Trademarks and Service Marks: Eurex Repo ®, Euro GC Pooling ®, GC Pooling ®, GCPI ®, USD GC Pooling ® are registered trademarks of DBAG. The STOXX ® indices, the data included therein and the trademarks used in the index names are the intellectual property of STOXX Limited and/or its licensors. Eurex deriv- atives based on the STOXX ® indices are in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto. The names of other companies and third party products may be trademarks or service marks of their respective owners.