GFI offers repo traders a new derivatives tool

The move makes GFI the first broker to offer both voice and online trading of the new FAGC derivatives products. GFI said the additions will give traders more time to decide which bonds they want to use in repo trades.FAGC repos allow traders to postpone the definition of the security to be delivered, as part of a general collateral repo trade, to a future date. GFI said this new flexibility will increase liquidity and allow short-selling, since traders will not have to commit to a particular bond at the time of the transaction. Usually, sellers of general collateral repo trades must surrender the underlying bond within an hour of a trade being executed. FAGC will grant sellers up to four working days to allocate a bond.

FAGCs will be traded as over-the-counter interest rate futures rolling over three months, six months, nine months and one-year periods. GFI worked with trading houses to create FAGC documentation, and conducts FAGC trading on a bilaterally settled basis.

The broker also added trading for corporate bond repos to GFInet, allowing euro, US dollar and sterling investment grade corporate securities repo trading online.

The launch is part of an upgraded version 2.3 of the GFInet repo trading screen, originally launched in August 2000. The system is currently used by 100 traders at more than 40 banks in Europe. The new release allows repo traders to increase order sizes after executing a trade, view total daily trade volumes per issue and engage in direct conversations with other traders online.

Michel Everaert, GFI’s London-based global head of product marketing, said the broker had no plans to expand the service into the United States.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Next-generation technologies and the future of trading

At a webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here