FICC’s ability to effectively process high volumes of U.S. Treasury transactions highlights the strength of the central clearing model in safeguarding the integrity of the world’s deepest and most liquid market.
This irrefutable fact – FICC’s mission of providing robust operational and risk management to the markets – is even more apparent in times of market stress and unexpected volatility. Last month, FICC’s Government Securities Division (GSD) successfully cleared several days of peak transaction volumes, reaching a new daily volume peak of $11.4 trillion on April 9.
These record volumes come amid unusually heightened market volatility, and they underscore the critical role that FICC and central clearing play in promoting the stability and resiliency of the U.S. Treasury market.
Related: DTCC Processes Record Volumes Amid Market Volatility
As activity continues to grow and demand for capacity increases exponentially, it demonstrates that FICC is built for scale. In September 2022, when the SEC's Treasury clearing proposal was first announced, the daily average volume in GSD was just $4.5 trillion. When the SEC's rule was finalized in December 2023, the daily average volume in GSD jumped to $7.2 trillion. Today, we are exceeding $9.6 trillion in daily average volume for March.
These record-breaking clearing volumes are a testament to our ability to meet growing industry and market demands, as well as the diverse needs of our clients. FICC has established a 40-year history of safety, soundness and scalability – attributes that are foundational to us, and where we will continue to focus.