Sponsored Service

Access centrally cleared U.S. Treasury and Agency repo markets with reduced risk, improved capital efficiency, and greater flexibility through FICC’s Sponsored Service.
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Sponsored Service

Benefit from the Scale and Resilience of Central Clearing

Expand access to U.S. Treasury and Agency markets through central clearing. Sponsored Service from the Fixed Income Clearing Corporation (FICC) allows eligible clients to participate in centrally cleared cash lending, borrowing, and securities transactions across U.S. Treasury and Agency markets. Through a Sponsoring Member, clients can engage in overnight and term DVP repo, as well as outright purchases and sales, while benefiting from the scale and resilience of central clearing. Sponsoring Members handle trade processing, settlement, and operational workflows with the central counterparty (CCP), helping streamline market access and reduce operational complexity.  

Key Features & Benefits

Risk Reduction Through Central Clearing

The CCP guarantees settlement completion in the event of a member default, helping reduce counterparty exposure and improve overall market stability.

Capital Efficiency and Balance Sheet Optimization

Netting and lower risk-weighted exposures can help reduce capital usage, allowing firms to operate more efficiently and redeploy resources.

Expanded Market Access and Flexibility

Sponsored Members can transact with a range of counterparties, supporting execution flexibility similar to bilateral markets while benefiting from centralized infrastructure.

Scalable risk management framework

Margining is performed at the Sponsored Member level using a Value-at-Risk model, while Sponsoring Members provide guarantees and manage Clearing Fund obligations to maintain robust oversight.

Wide Range of Eligible Securities

Encompassing U.S. Treasury Bills, Bonds, Notes, TIPS, STRIPS, and non-mortgage-backed Agency securities.

Enhanced Efficiency for the Evolving Repo Markets

Evolving repo markets are putting firms under pressure to reduce risk, optimize balance sheets, and operate more efficiently. Sponsored Service helps bring a broader range of participants into central clearing, strengthening market stability while maintaining the flexibility firms rely on today.   

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