FICC’s Government Securities Division clears record daily activity
03 October 2024 US
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The Fixed Income Clearing Corporation’s (FICC’s) Government Securities Division (GSD) has cleared a “record-breaking” US$10 trillion in daily activity for the first time.
This figure from 30 September represents an 8.7 per cent increase from the previous daily activity peak of US$9.2 trillion on 3 September.
According to the Depository Trust and Clearing Corporation (DTCC), FICC is seeing “persistent and significant growth” in voluntary clearing volumes as market participants “proactively onboard” in preparation for the forthcoming implementation of the US Treasury clearing mandate.
The date, 30 September, also meant a new peak volume of more than US$1.7 trillion for FICC’s Sponsored Service, which created US$846 billion in balance sheet savings across the industry.
Laura Klimpel, managing director and head of DTCC’s fixed income and financing solutions, says: “FICC remains laser-focused on our mission to provide efficient and robust clearing capabilities for the industry.
“At the same time, we continue to innovate in rolling out new products that create value for our clients, whether through capital efficiencies, margining efficiencies, such as cross margining, or new service innovations.”
In addition, FICC is advancing its efforts to support done-away clearing in the Treasury market.
Both its Sponsored Service and the Agent Clearing Service support done-away activity, or transactions executed by an indirect participant with a counterparty that is not their clearing intermediary.
DTCC says that many market participant firms are considering opportunities to clear done-away activity through indirect access models to comply with the upcoming implementation of the trade submission requirement.
Kimpel adds: “We remain keenly focused on promoting expanded access to done-away clearing at FICC, and are working across the industry to address considerations to support that evolution.
“Specifically, the accounting treatment will be key in determining how done-away clearing can be economically viable for clearing brokers to offer, and we are proud to be helping to spearhead that effort, as well as supporting the operational workflow and legal documentation efforts that will also be critical in making expanded done-away clearing in the Treasury market a reality.”
This figure from 30 September represents an 8.7 per cent increase from the previous daily activity peak of US$9.2 trillion on 3 September.
According to the Depository Trust and Clearing Corporation (DTCC), FICC is seeing “persistent and significant growth” in voluntary clearing volumes as market participants “proactively onboard” in preparation for the forthcoming implementation of the US Treasury clearing mandate.
The date, 30 September, also meant a new peak volume of more than US$1.7 trillion for FICC’s Sponsored Service, which created US$846 billion in balance sheet savings across the industry.
Laura Klimpel, managing director and head of DTCC’s fixed income and financing solutions, says: “FICC remains laser-focused on our mission to provide efficient and robust clearing capabilities for the industry.
“At the same time, we continue to innovate in rolling out new products that create value for our clients, whether through capital efficiencies, margining efficiencies, such as cross margining, or new service innovations.”
In addition, FICC is advancing its efforts to support done-away clearing in the Treasury market.
Both its Sponsored Service and the Agent Clearing Service support done-away activity, or transactions executed by an indirect participant with a counterparty that is not their clearing intermediary.
DTCC says that many market participant firms are considering opportunities to clear done-away activity through indirect access models to comply with the upcoming implementation of the trade submission requirement.
Kimpel adds: “We remain keenly focused on promoting expanded access to done-away clearing at FICC, and are working across the industry to address considerations to support that evolution.
“Specifically, the accounting treatment will be key in determining how done-away clearing can be economically viable for clearing brokers to offer, and we are proud to be helping to spearhead that effort, as well as supporting the operational workflow and legal documentation efforts that will also be critical in making expanded done-away clearing in the Treasury market a reality.”
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