FICC Sponsored Service also experiences growth, with Sponsored Service buyside volumes increasing by 74% and Sponsored Member Firms increasing by 60%
New York/London/Hong Kong/Singapore/Sydney, March 12, 2024 ‒ DTCC, the premier post-trade market infrastructure for the global financial services industry, today announced that its Fixed Income Clearing Corporation (FICC) Treasury clearing volumes have grown 31% year over year, processing a daily average volume of USD$7.019 trillion. This growth comes at a time when market participant firms are assessing the impact of the U.S. Securities and Exchange Commission’s (SEC) new requirements that expand the application of central clearing to certain U.S. Treasury repo and secondary market cash transactions.
“We are pleased to see the continued increase in clearing activity and expect that trend to continue as we move toward go-live for the expanded Treasury Clearing requirement. The growth to a daily average volume of USD$7.019 trillion is roughly double the volume that is expected to migrate into central clearing as a result of the Treasury clearing requirement. DTCC is well-prepared for the implementation, which we view as a logical expansion of the large-scale, resilient, proven services that FICC has provided for nearly 40 years,” stated Brian Steele, Managing Director, President, Clearing & Securities Services.
In addition to the increase in overall clearing volumes, FICC’s Sponsored Service has also experienced growth in the last year. Sponsored Service clearing volumes increased 74% to a daily average of USD$938 billion. The number of Sponsored Members participating in FICC also increased 60% to 2,414 firms that represent a diverse set of asset managers of different profiles and regulated statuses.
“The fact that more and more firms are voluntarily choosing to clear their trades through FICC’s Sponsored Service, which is reflected in the growth of the community and in volumes, is a testament to the value central clearing delivers to market participants. It also reflects the industry’s confidence in FICC’s risk management capabilities, and support for our unique ownership and governance structure, which allows us to take a long-term view of risk and make decisions that are in the best interest of the marketplace,” said Laura Klimpel, Managing Director, Head of Fixed Income and Financing Solutions. “FICC provides certainty and stability to the Treasury market while enabling firms to maximize liquidity, take advantage of netting and generate balance sheet relief.”
FICC’s Sponsored Service, offered through its Government Securities Division (GSD), is one of the many access methods that FICC offers that clients can choose to best meet their business needs and goals. Additional access models provide participants with the ability to have their activity submitted directly to FICC or agency-intermediary style.
Added Klimpel, “Our clients frequently tell us about the value and efficiencies that the Sponsored Service brings to their firms’ resilience and risk management practices today, with many of these firms consistently processing significant volumes with us. We look forward to building on our strong track record of delivering innovative solutions to further mitigate risk, optimize collateral usage, reduce capital requirements, and enhance overall market efficiency.”
About DTCC
With 50 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 20 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency, enhancing performance and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm innovates purposefully, simplifying the complexities of clearing, settlement, asset servicing, transaction processing, trade reporting and data services across asset classes and bringing increased security, enhanced resilience and soundness to financial markets. In 2022, DTCC’s subsidiaries processed securities transactions valued at U.S. $2.5 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $72 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes more than 17.5 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, X, YouTube, Facebook, and Instagram.