FICC鈥檚 Government Securities Division reports 30% YoY jump in daily activity
21 August 2024 US
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The Depository Trust and Clearing Corporation (DTCC) has revealed that its Fixed Income Clearing Corporation鈥檚 (FICC) Government Securities Division (GSD) processed US$8.8 trillion in daily activity on 31 July.
The new 鈥渕ilestone鈥� figure represents a 30 per cent jump year-over-year (YoY), DTCC reports.
The post trade market infrastructre attributes this 鈥渟ignificant and continued growth鈥� to rising volumes and activity in the US Treasury market, as well as the continued expansion of FICC鈥檚 Sponsored Service.
This service saw a new peak volume of US$1.4 trillion on 15 August, a 78 per cent growth YoY.
Laura Klimpel, head of DTCC鈥檚 fixed income and financing solutions, says: 鈥淔ICC鈥檚 wide range of access models makes it possible for a greater percentage of the market to take advantage of the many benefits of central clearing.
鈥淥ne of those models, our Sponsored Service, has become an integral part of the US repo market, offering sponsoring members the ability to sponsor their clients into FICC membership to maximise capital efficiency and offer more funding capacity to the market, increasing overall liquidity鈥�
There are now more than 2,400 sponsored members across 50 approved jurisdictions participating in FICC clearing, the firm says.
Sponsoring members of FICC鈥檚 Sponsored Service act as operational and administrative agents guaranteeing their clients鈥� activity to FICC, while delivering numerous benefits to participants, says DTCC, which includes opportunities to reduce counterparty risk, obtain balance sheet and capital relief, and increase their transaction capacity.
In July 2024, FICC鈥檚 Sponsored Service generated an aggregate average of approximately US$500 billion daily in balance sheet savings across the industry, peaking on 31 July at approximately US$616 billion of aggregate balance sheet savings.
The new 鈥渕ilestone鈥� figure represents a 30 per cent jump year-over-year (YoY), DTCC reports.
The post trade market infrastructre attributes this 鈥渟ignificant and continued growth鈥� to rising volumes and activity in the US Treasury market, as well as the continued expansion of FICC鈥檚 Sponsored Service.
This service saw a new peak volume of US$1.4 trillion on 15 August, a 78 per cent growth YoY.
Laura Klimpel, head of DTCC鈥檚 fixed income and financing solutions, says: 鈥淔ICC鈥檚 wide range of access models makes it possible for a greater percentage of the market to take advantage of the many benefits of central clearing.
鈥淥ne of those models, our Sponsored Service, has become an integral part of the US repo market, offering sponsoring members the ability to sponsor their clients into FICC membership to maximise capital efficiency and offer more funding capacity to the market, increasing overall liquidity鈥�
There are now more than 2,400 sponsored members across 50 approved jurisdictions participating in FICC clearing, the firm says.
Sponsoring members of FICC鈥檚 Sponsored Service act as operational and administrative agents guaranteeing their clients鈥� activity to FICC, while delivering numerous benefits to participants, says DTCC, which includes opportunities to reduce counterparty risk, obtain balance sheet and capital relief, and increase their transaction capacity.
In July 2024, FICC鈥檚 Sponsored Service generated an aggregate average of approximately US$500 billion daily in balance sheet savings across the industry, peaking on 31 July at approximately US$616 billion of aggregate balance sheet savings.
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