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
BNP Paribas: ESG investment seeing increased interest
25 May 2017 | London | Reporter: Stephanie Palmer
The survey report noted that 77 percent of asset owners already incorporate ESG aspects into their strategies
Nasdaq to support Chilean CSD in post-trade tech
25 May 2017 | Santiago | Reporter: Stephanie Palmer
Based on the Nasdaq Financial Framework the solution will replace Depósito Central de Valores’s existing core system
Funds need to keep an eye on BEPS negotiations
24 May 2017 | London | Reporter: Becky Butcher
Fund participants were encouraged at Guernsey’s Fund Forum to pay close attention to negotiations over base erosion and profit sharing (BEPS) rules
Northern Trust expands UAE operations
24 May 2017 | Abu Dhabi | Reporter: Stephanie Palmer
Northern Trust has opened a new branch office in Abu Dhabi, as part of a continuing focus on business in the UAE
R3 raises record funds for DLT development
24 May 2017 | London | Reporter: Stephanie Palmer
The R3 group has raised $107 million in two tranches of fundraising, securing the largest ever investment in distributed ledger technology to date
Promotions abound at Interstrust in Jersey
24 May 2017 | Jersey | Reporter: Stephanie Palmer
Intertrust in Jersey has made a spate of promotions, including elevating Sherin Sugeeswaran to the role of associate director in the fund services team
RSRCHXchange boosts research offering with data consumption partnership
23 May 2017 | London | Reporter: Stephanie Palmer
Institutional research marketplace RSRCHXchange has partnered with corporate access management solution provider CorpAxe in order to make research consumption data available to the buy side
More news