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DTCC Statement on FICC Activities Following S&P Rating Change on U.S. Sovereign Debt
No Current Plans to Adjust Applicable Haircuts for GSD Clearing Fund, MBSD Participants Fund Collateral
New York, August 7, 2011 – The Depository Trust & Clearing Corporation (DTCC) today issued the following statement regarding activities of its Fixed Income Clearing Corporation (FICC) subsidiary in light of Standard & Poor’s rating change on US sovereign debt:
FICC has no current plans to make any changes in our applicable valuations of securities (or haircuts) required for collateral for its Government Securities Division (GSD) Clearing Fund and its Mortgage-Backed Securities Division (MBSD) Participants Fund at this time. We continue to monitor market developments and volatility in the coming days to assess if we will need to make any changes in our processes FICC will operate under its normal schedule for input and reporting during the week of August 8.
DTCC is confident in its ability to protect the capital markets and our members throughout a wide variety of market scenarios including this current situation.
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com