Significant growth in voluntary clearing is a direct result of FICC’s flexible access models and the value of central clearing, including significant balance sheet efficiencies.
New York/London/Hong Kong/Singapore/Sydney, October 3, 2024 ‒ The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that its Fixed Income Clearing Corporation’s (FICC’s) Government Securities Division (GSD) successfully cleared a record-breaking USD$10 trillion in daily activity for the first time on September 30, an 8.7% increase from the previous daily activity peak of USD$9.2 trillion on September 3.
FICC is seeing persistent and significant growth in voluntary clearing volumes as market participants proactively onboard in preparation for the forthcoming implementation of the US Treasury clearing mandate. This growth can be attributed to the value of central clearing, which includes balance sheet efficiencies. On September 30 alone, FICC’s Sponsored Service reached a new peak volume over USD$1.7 trillion which created USD$846 billion in balance sheet savings across the industry.
“FICC remains laser-focused on our mission to provide the most efficient and robust clearing capabilities for the industry,” said Laura Klimpel, Managing Director and Head of DTCC’s Fixed Income and Financing Solutions. “At the same time, we continue to innovate in rolling out new products that create maximum value for our clients, whether through capital efficiencies, margining efficiencies, such as cross margining, or new service innovations.”
In addition to supporting daily volumes and growth, FICC is advancing its efforts to support done-away clearing in the Treasury market. Both the Sponsored Service and the Agent Clearing Service support done-away activity, or transactions executed by an indirect participant with a counterparty that is not their clearing intermediary. Many market participant firms are considering opportunities to clear done-away activity through indirect access models to comply with the upcoming implementation of the trade submission requirement.
“We remain keenly focused on promoting expanded access to done-away clearing at FICC and are working across the industry to address considerations to support that evolution. Specifically, the accounting treatment will be key in determining how done-away clearing can be economically viable for clearing brokers to offer, and we are proud to be helping to spearhead that effort, as well as supporting the operational workflow and legal documentation efforts that will also be critical in making expanded done-away clearing in the Treasury market a reality,” added Klimpel.
About DTCC
With 50 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 20 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency, enhancing performance and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm innovates purposefully, simplifying the complexities of clearing, settlement, asset servicing, transaction processing, trade reporting and data services across asset classes and bringing increased security, enhanced resilience and soundness to financial markets. In 2022, DTCC’s subsidiaries processed securities transactions valued at U.S. $2.5 quadrillion and its depository subsidiary provided custody and asset servicing for securities issues from over 150 countries and territories valued at U.S. $72 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes more than 17.5 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, X, YouTube, Facebook, and Instagram.