Sponsored membership at the Government Securities Division (GSD) of FICC offers eligible clients the ability to engage in FICC-cleared cash lending and cash borrowing transactions in U.S. Treasury and Agency Securities and outright purchases and sales of such securities. Sponsoring Members facilitate their sponsored clients’ GSD trading activity and act as processing agents on their behalf for all operational functions, including trade submission and settlement with the CCP.
Eligible securities types include:
- US Treasury Bills, Bonds and Notes
- US Treasury Inflation Protected Securities (TIPS)
- US Treasury STRIPS
- Non-Mortgage-Backed Agency Securities
- US Treasury Floating Rate Notes (FRNs)
As part of an important expansion, approved by the US Securities and Exchange Commission (SEC) in March 2019, FICC now permits all full service netting members of FICC/GSD (other than Repo Brokers) to participate in the Sponsored Service as Sponsoring Members.
Sponsoring Members, at their discretion, have the ability to let their clients trade with counterparties other than themselves, providing sponsored members with the same execution flexibility they have in the bi-lateral market today.