The Government Securities Division of Fixed Income Clearing Corporation (FICC) is the leading provider of trade comparison, netting and settlement for the Government securities marketplace. The company was established in 1986 to provide automated comparison and settlement services, risk-management benefits and operational efficiencies to the Government securities industry. Our participants include the nation's major brokers and dealers, as well as a wide range of entities that trade U.S. Government securities.
The Government Securities Division's comparison and netting systems form the core of all services. These systems are used to compare transactions in eligible Treasury bills, notes, bonds, and zero-coupon securities, as well as book-entry non-mortgage-backed agency securities. The transactions are then netted into one position per issue, whereby the Government Securities Division becomes the counterparty for settlement purposes for each net position.
Listed in the menu on the left are the services provided by the Government Securities Division. Please click on any one of them for more detailed information.
In order to use the Comparison service, a firm must first become a comparison participant of the Government Securities Division. Any entity that can benefit from using trade comparison is eligible to become a comparison participant.
Comparison participants of the Government Securities Division that can benefit from netting and settlement processing and who meet the Government Securities Division's criteria for netting membership may become netting members.
All Government Securities Division participants that can benefit from repo comparison processing are eligible for the comparison service. Participants must first test their repo input and output by having it processed on the Government Securities Division's test systems. Participants must also execute the "Acknowledgment of Participation in the Repo Comparison Process" form. Netting and Settlement services for repos are available to netting participants of the Government Securities Division that execute the "Acknowledgment for Netting of Repurchase Transactions" form and are designated as eligible for repo netting by the FICC Membership and Risk Committee.
The Auction Takedown service and the Yield-to-Price service are automatic for netting participants of the Government Securities Division.
It should be noted that only proprietary awards of U.S. Treasury bills, notes, and bonds are eligible for the Treasury Auction Takedown service. Securities that are auctioned and issued on the same date are not eligible. Before using the service, participants must sign the Government Securities Division's "Delivery and Payment Agreement" form, which instructs the Federal Reserve Banks to send all of a participant's eligible auction awards to the Government Securities Division for comparison, netting, and settlement.
For additional information on utilizing any of the Government Securities Division's services, please contact Member Services.
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