FICC’s Government Securities Division clears record daily activity
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FICC’s Government Securities Division clears record daily activity 09 September 2024US Reporter: Carmella Haswell
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The Fixed Income Clearing Corporation’s (FICC’s) Government Securities Division (GSD) has cleared a “record-setting” US$9.2 trillion in daily activity on 3 September.
According to the Depository Trust & Clearing Corporation (DTCC), the new milestone follows the previous peak volume of US$8.8 trillion in daily activity on 31 July — a 4.5 per cent increase.
In the past 12 months, GSD's total activity increased 42 per cent year-over-year (YoY).
FICC’s GSD is a provider of trade comparison, netting and settlement for the government securities marketplace, providing automated comparison and settlement services, risk-management benefits and operational efficiencies to the government securities industry.
In addition to this growth, DTCC reports that on 3 September, GSD’s Sponsored Service reached a peak volume of US$1.414 trillion in cleared US Treasury activity.
The service has experienced 98 per cent growth YoY, now with 2,500 sponsored members.
The Sponsored Service permits full-service netting members of GSD to participate as sponsoring members, providing access to FICC’s central clearing services to intermediated sponsored members.
Commenting on the record, Laura Klimpel, managing director and head of DTCC’s fixed income and financing solutions, says: “The continued and persistent volume growth that we are seeing across GSD, as well as across access models, is a testament to the value of central clearing with FICC, including reduced risk and capital and balance sheet relief.
“FICC’s GSD has become a crucial component to the smooth functioning of the US Treasury market, a responsibility we take very seriously.
“Our recent achievements in daily transaction volumes underline FICC’s strong capacity to accommodate increasing volumes and market volatility, and well positions us to support clients for the US Securities and Exchange Commission’s new rules for expanded US Treasury Clearing.”
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