03 May 2017
New York
Reporter: Drew Nicol

DTCC expands repo clearing services


The Depository Trust & Clearing Corporation’s (DTCC) US clients can now leverage additional balance sheet relief by centrally clearing repos.

DTCC gained approval from the US Securities and Exchange Commission (SEC) to expand its cleared repo services through its Fixed Income Clearing Corporation (FICC) subsidiary to allow institutional investors to participate in the new centrally cleared institutional triparty (CCIT) service.

Investors can also access the services indirectly through a sponsoring member bank. FICC will now permit additional qualified institutional buyer clients to lend cash and US treasuries via their sponsoring member banks throughout the day.

According to DTCC, CCIT is the only US central counterparty (CCP) platform that clears triparty repo and debt transactions.

As an expansion of the core GCF Repo Service, FICC will extend its CCP services and guaranty of the completion of eligible trades to triparty repo transactions between its dealer members and eligible triparty cash lenders.

Commenting on the SEC’s approval, DTCC said that centrally clearing these transactions at FICC offers members opportunities for potential balance sheet netting and capital relief, which, in turn, may afford institutional investors increased lending capacity and income.­

“The repo market is a critical source of funding for broker-dealers and an important cash management tool for institutional counterparties,” said Murray Pozmanter, DTCC head of clearing agency services.

“We believe the larger group of market participants able to use central clearing through the CCIT Service and sponsored membership program strengthens the entire marketplace.”

“We applaud the SEC actions, and look forward to delivering increased central clearing capabilities to our expanded community.”

More Industry news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BlackRock sees lending revenue growth
17 October 2017 | London | Reporter: Drew Nicol
BlackRock saw its securities lending revenue hit $150 million in Q3, compared to $142 during the same period in 2016
Nex appoints new CEO
16 October 2017 | London | Reporter: Jenna Lomax
Ken Pigaga, who was previously global COO at the fintech company, will begin his new role this month, but will remain as a director on the NEX board
Is the sec lending industry experiencing evolution or revolution?
13 October 2017 | London | Reporter: Jenna Lomax
The securities lending industry is facing an evolution, as opposed to a revolution, attendees heard at the ISLA 8th Annual Post Trade Conference
Brexit: next three years ‘crucial’ for sec lending industry
13 October 2017 | London | Reporter: Jenna Lomax
Panellists at the ISLA 8th Annual Post Trade Conference discussed how the UK’s exit will affect the securities lending industry
The industry needs to ‘embrace’ fintech
13 October 2017 | London | Reporter: Jenna Lomax
The securities lending industry needs to embrace fintech, according to a panellist at ISLA 8th Annual Post Trade Conference
ISLA appoints Jonathan Lombardo as chair
11 October 2017 | London | Reporter: Jenna Lomax
As part of a wider board reshuffle BNY Mellon's Simon Tomlinson was re-elected as treasurer, while Krangel, Citibank, moved into the role of executive officer.
ColleX executes first T+0 triparty collateral loan
10 October 2017 | London | Reporter: Becky Butcher
ColleX has executed its first T+0 triparty collateral loan to help improve efficiency in securities finance trading