J.P. Morgan marks milestone in DTCC’s repo programme
05 April 2019 New York
Image: Shutterstock
J.P. Morgan has completed its first cleared repo transaction under the newly approved Category 2 Sponsoring Member classification marking an important milestone for the Depository Trust & Clearing Corporation (DTCC).
This follows the recent Securities and Exchange Commission (SEC) approval for DTCC subsidiary Fixed Income Clearing Corporation (FICC) to expand its Sponsored Service.
Through the expanded Sponsored Service, a broader category of market participants can participate in the service as sponsors.
This includes dealers, non-US Banks and prime brokers (all referred to as Category 2 Sponsoring Members).
In addition to J.P. Morgan, there are now over 12 Category 2 Sponsoring Members approved, or in the process of approval, to leverage the new service.
According to DTCC, the expansion also changed how the service can be used, with sponsors now able to let their clients trade with counterparties other than themselves.
J.P. Morgan’s managing director of fixed income financing Brian Connell said: “We were excited to participate in the original sponsored repo programme and we believe the expansion of the program will continue to streamline dealer balance sheets and further enhance repo market liquidity.”
Murray Pozmanter, DTCC managing director and head of clearing agency services, added: “We are pleased by the early interest we have had from market participants as it is a tremendous indication of the positive impact this expansion will have for the Treasury marketplace.”
Pozmanter added: “The increased participation, particularly from the buy side, will yield significant benefits in reducing systemic risk and creating market capacity.”
This follows the recent Securities and Exchange Commission (SEC) approval for DTCC subsidiary Fixed Income Clearing Corporation (FICC) to expand its Sponsored Service.
Through the expanded Sponsored Service, a broader category of market participants can participate in the service as sponsors.
This includes dealers, non-US Banks and prime brokers (all referred to as Category 2 Sponsoring Members).
In addition to J.P. Morgan, there are now over 12 Category 2 Sponsoring Members approved, or in the process of approval, to leverage the new service.
According to DTCC, the expansion also changed how the service can be used, with sponsors now able to let their clients trade with counterparties other than themselves.
J.P. Morgan’s managing director of fixed income financing Brian Connell said: “We were excited to participate in the original sponsored repo programme and we believe the expansion of the program will continue to streamline dealer balance sheets and further enhance repo market liquidity.”
Murray Pozmanter, DTCC managing director and head of clearing agency services, added: “We are pleased by the early interest we have had from market participants as it is a tremendous indication of the positive impact this expansion will have for the Treasury marketplace.”
Pozmanter added: “The increased participation, particularly from the buy side, will yield significant benefits in reducing systemic risk and creating market capacity.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
