Subject to regulatory approval, the Government Securities Division (“GSD”) of the Fixed Income Clearing Corporation’s (“FICC”) Same-Day Settling Service Proposal (the “Proposal”)1 will expand the capabilities of its central clearing services to include the start legs on Members’ same-day starting repo transactions (inclusive of Brokered Repo Transactions) that are transacted under an Eligible Netting Security in the risk management, novation, guarantee and settlement services of the DVP Service. As these transactions are same-day settling start leg repos, they will not go through the netting process prior to their original Scheduled Settlement Date.
The proposed Same-Day Settling Service will be voluntary for Inter-Dealer Broker Netting Members and for Dealer Netting Members with segregated repo accounts (collectively referred to as “Repo Brokers”) but will be mandatory for all other Netting Members including Sponsored Members who execute transactions with Netting Members other than their Sponsoring Member.
In addition to the Same-Day Settling Service Proposal, GSD is proposing an optional Pair-Off Service, whereby GSD would systematically pair-off Members’ unsettled Securities Settlement Obligations.
Please refer to the GSD Same-Day Settling Service Documentation section found on this page for more details. Readers must log on to the DTCCLearning.com site in order to access the documentation listed below.
GSD Same-Day Settling Service Documentation
GSD Same-Day Settling Service Overview
GSD Same-Day Settling Service Operational Best Practices Reference Guide
GSD Same-Day Settling Service Interactive Messaging (IM) Specifications
1This Proposal is provided for informational purposes only. The processes and services referenced in this Proposal are subject to the approval of the U.S. Securities and Exchange Commission. This Proposal should not be regarded as a definitive or exhaustive description nor should it be regarded as a substitute for the GSD Rulebook (the “GSD Rules”), which governs in all respects, the relationship between GSD and its members. In all cases, members and prospective members should refer to the GSD Rules for a complete statement of GSD’s procedures, obligations, and requirements. Nothing in this Proposal shall be deemed to impose any obligations on GSD that are not set forth in the GSD Rules. The Proposal as set forth herein may be amended at any time without prior notice.
Pursuant to FICC’s regulatory obligation, all written comments, including emails, sent to FICC in connection with the proposal may be disclosed to the U.S. Securities and Exchange Commission and/or included in the related rule filing/advance notice filing. Please contact us if you have any questions about this requirement.