New York
03 May 2017
Reporter: Drew Nicol
DTCC expands repo clearing services
The Depository Trust & Clearing Corporation’s (DTCC) US clients can now leverage additional balance sheet relief by centrally clearing repos.

DTCC gained approval from the US Securities and Exchange Commission (SEC) to expand its cleared repo services through its Fixed Income Clearing Corporation (FICC) subsidiary to allow institutional investors to participate in the new centrally cleared institutional triparty (CCIT) service.

Investors can also access the services indirectly through a sponsoring member bank. FICC will now permit additional qualified institutional buyer clients to lend cash and US treasuries via their sponsoring member banks throughout the day.

According to DTCC, CCIT is the only US central counterparty (CCP) platform that clears triparty repo and debt transactions.

As an expansion of the core GCF Repo Service, FICC will extend its CCP services and guaranty of the completion of eligible trades to triparty repo transactions between its dealer members and eligible triparty cash lenders.

Commenting on the SEC’s approval, DTCC said that centrally clearing these transactions at FICC offers members opportunities for potential balance sheet netting and capital relief, which, in turn, may afford institutional investors increased lending capacity and income.­

“The repo market is a critical source of funding for broker-dealers and an important cash management tool for institutional counterparties,” said Murray Pozmanter, DTCC head of clearing agency services.

“We believe the larger group of market participants able to use central clearing through the CCIT Service and sponsored membership program strengthens the entire marketplace.”

“We applaud the SEC actions, and look forward to delivering increased central clearing capabilities to our expanded community.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Custody not a commodity
28 June 2017 | Warsaw | Reporter: Stephanie Palmer
Viewing custody and clearing as a commoditised industry could be putting pressure on pricing and threatening the industry, according to speakers at The Network Forum
BNY Mellon and Australian financial service provider One Investment Group are joining forces to offer global custody services to Australian fund managers, trustees and responsible entities
70 percent say cyber crime will lead to financial crisis
28 June 2017 | Warsaw | Reporter: Stephanie Palmer
The next financial crisis is ‘highly likely’ to be caused by cyber crime, and the only way to manage this is for the industry to come together, according to a panel session at The Network Forum in Warsaw
J.P. Morgan recruits new head of global custody
28 June 2017 | London | Reporter: Mark Dugdale
Hughes has joined the bank from Deutsche Bank, where he was head of strategic execution for global securities services
R3 completes prototype for ECP issuance
27 June 2017 | London | Reporter: Stephanie Palmer
R3 and four of its member banks have collaborated to build a solution for issuing Euro Commercial Paper on a distributed ledger technology platform
€50 billion mandate win for Caceis
27 June 2017 | Rome | Reporter: Stephanie Palmer
Caceis has been selected to provide custody, depository, fund administration and transfer agency services for Amundi SGR, the Italian subsidiary of the Amundi Group
EFAMA elects Nott as new president
26 June 2017 | London | Reporter: Stephanie Palmer
The European Fund and Asset Management Association has elected William Nott of M&G Securities to serve a two-year terms as president
More news