DTCC’s Fixed Income Clearing Corporation (FICC) has processed more than US $750 billion in daily sponsored activity through its sponsored service.
The sponsored service allows sponsoring members to serve as operational and administrative agents on their clients’ behalf, enabling them to submit their clients’ trading activity to the FICC for novation as eligible securities.
This allows for a reduction of counterparty risk, facilitates increased transaction capacities and provides balance sheet and capital relief.
FICC recently expanded its services with the sponsored general collateral service, which has exceeded $100 billion in daily activity since its launch.
Laura Klimpel, general manager of the FICC and head of SIFMU business development, says: “The sponsored service has made it possible to bring a greater percentage of the market into clearing, while still maintaining robust risk management standards. FICC members have the opportunity to offer their eligible clients the ability to lend cash or eligible collateral through clearing at FICC.”
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