The Telematico Basis Trading Facility allows for the electronic trading of the
gross basis.
By trading the gross basis, participants simultaneously
buy (sell) a cash security and sell (buy) a futures contract,
in one single order book.
The Telematico Basis Trading offers anonymous trading between
participants and full straight through processing.
Eurex's German government bond futures (Schatz, Bobl and
Bund) are eligible for the system.
Telematico automatically executes the cash leg of the trade
in the normal Telematico cash market, and executes simultaneously
the required number of futures contract within the price
brackets allowed by the futures Exchange.
The post trading fully benefits from straight-through processing.
The cash leg is sent for settlement to LCH, and the futures
leg is sent to Eurex clearing system, allowing participants
for automatic reconciliation of the trades and anonymous
trading.
The automated settlement and settlement process offers
several advantages, including reduced involvement of back
office staff, elimination of potential errors, and reduced
settlement and clearing costs.
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