FICC Enhances Capabilities Ahead of SEC Mandatory Clearing Deadline
The Fixed Income Clearing Corporation ("FICC"), a subsidiary of the Depository Trust and Clearing Corporation ("DTCC,") launched an "enhanced Agent Clearing Service," and new "[clearing] and margin segregation capabilities," ahead of the SEC's March 31, 2025 deadline for mandatory clearing of covered U.S. Treasury cash activity and repo activity.
In the release, the DTCC said that the FICC's Agent Clearing Service allows for access to central clearing and separation of house and customer activity. The DTCC reported that "cleared buyside activity through FICC experienced an 85% year-over-year growth in FICC's Sponsored Service in February, and a peak Sponsored volume over $2T at year end 2024."
The DTCC said that the FICC is "already clearing nearly half of the outstanding Treasury repo covered by the SEC's clearing requirement, with U.S. Money Market Funds already clearing approximately 46% of their covered U.S. Treasury repo activity through FICC today."
The DTCC said daily average volumes of central clearing currently exceed $9 trillion, up from $4.5 trillion before the mandatory clearing rule was proposed. The DTCC reported that FICC is supporting over 1,500 Executing Firm customers through its Agent Clearing Service and has over 5,800 Sponsored Member relationships.
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