FICC is the only central counterparty (CCP) platform in the U.S. that clears tri-party repo and debt transactions. Since 1998, FICC’s GCF Repo® Service has enabled its dealer members to trade FICC-cleared general collateral repos with each other based on rate, term and underlying product through the day without requiring intra-day, trade-for-trade settlement on a Delivery-versus- Payment (DVP) basis.
As an expansion of the GCF Repo® Service, the CCIT Service will
extend FICC’s CCP services and guarantee of completion of
eligible trades to tri-party repo transactions between GSD dealer
members and eligible tri-party money lenders.
- FICC Membership Requirements. A new limited GSD membership type is now available for tri-party money lenders (referred to as CCIT Membership). As principal counterparties to the CCP, individual tri-party money lenders are required to become CCIT Members at the legal entity level.
- Trade Submission and Matching. For trade matching purposes, GSD accounts for tri-party money lenders may be opened at the legal entity level or at the joint account level. Investment advisers, agent lenders or other authorized agents may submit trades to FICC on behalf of their tri-party money lender clients.
- Tri-Party Account Requirements. Each tri-party money lender or joint account (as applicable) is required to open a specific tri-party account for the CCIT Service at the applicable tri-party bank.