Fixed Income Clearing Corporation

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Fixed Income Clearing Corp.
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Founded 2003
Headquarters New York

Fixed Income Clearing Corp. (FICC) is a subsidiary of the Depository Trust & Clearing Corporation (DTCC). It facilitates fixed income transaction processing by integrating the Government Securities Clearing Corporation and the Mortgage-Backed Securities Clearing Corporation.

The Government Securities Division (GSD) of FICC provides real-time trade matching, clearing, risk management and netting for trades in US Government debt issues, including repurchase agreements or repos.

In July 2012, the Financial Stability Oversight Council designated FICC as a systemically important nonbank financial company or financial market utility (SIFMU). The designation means FICC is subject to heightened risk management, financial resource, and other standards, but also gains access to the Federal Reserve's emergency lending facilities.

In November of 2018 the FICC became the number one counterparty for repo trades backed by US Treasury securities for the first time, hitting $85.3 billion for the month - which accounted for 13.3% of the market, according to data from the Office of Financial Research.[1]

On April 1, 2019, the DTCC announced that it had received SEC approval to expand the range of buy-side firms that can join the FICC as sponsored members.[2]

Key People

References

  1. FICC takes firm grip of US repo market. Risk.net.
  2. DTCC to Expand Sponsored Service to Bring Greater Capacity to the Treasury Market. DTCC.