The Depository Trust & Clearing Corporation (DTCC), a post-trade market infrastructure for the global financial services industry, has seen its Fixed Income Clearing Corporation (FICC) Treasury clearing volumes grow 31% year over year, processing a daily average volume of $7.02tn.
DTCC’s reported growth comes at a time when many market participants are assessing the impact of the US Securities and Exchange Commission’s new requirements, which expand the application of central clearing to certain US Treasury repo and secondary market cash transactions.
In a statement, Brian Steele, who leads DTCC’s clearing and securities services, said: “We are pleased to see the continued increase in clearing activity and expect that trend to continue as we move toward go-live for the expanded Treasury Clearing requirement. The growth to a daily average volume of $7.019tn is roughly double the volume that is expected to migrate into central clearing as a result of the Treasury clearing requirement. DTCC is well-prepared for the implementation, which we view as a logical expansion of the large-scale, resilient, proven services that FICC has provided for nearly 40 years.”
FICC’s Sponsored Service, an access model that is offered through its Government Securities Division, has also seen growth, with clearing volumes increasing 74% to a daily average of $938bn. The number of Sponsored Members participating in FICC also increased 60% to 2,414 firms.
Laura Klimpel, Managing Director and Head of Fixed Income and Financing Solutions at DTCC, added: “The fact that more and more firms are voluntarily choosing to clear their trades through FICC’s Sponsored Service, which is reflected in the growth of the community and in volumes, is a testament to the value central clearing delivers to market participants. It also reflects the industry’s confidence in FICC’s risk management capabilities, and support for our unique ownership and governance structure, which allows us to take a long-term view of risk and make decisions that are in the best interest of the marketplace.
“FICC provides certainty and stability to the Treasury market while enabling firms to maximise liquidity, take advantage of netting and generate balance sheet relief.”
