DTCC'S FICC Launches New Sponsored General Collateral Service

The Depository Trust & Clearing Corporation (DTCC) announced the launch of its Sponsored General Collateral (GC) Service, a new offering from its Fixed Income Clearing Corporation (FICC) subsidiary. The new Sponsored GC Service allows Sponsoring Members and their Sponsored Member Clients to submit triparty repo transactions executed on a general collateral basis across U.S. Treasury securities, agency debentures and agency mortgage-backed securities collateral to central clearing. Users benefit from a reduction in operational and counterparty risk, potential balance sheet and capital relief, and access to greater market liquidity. The new service has been launched in collaboration with BNY Mellon and with the support of Broadridge. As part of this offering, cleared repo transactions will settle on the triparty platform of BNY Mellon, similar to how triparty repo transactions are handled outside of central clearing today. By enabling access to FICC via BNY Mellon’s triparty repo platform, users benefit from an operationally efficient way to clear their repo transactions – including overnight and term repo transactions. BNY Mellon will also act as a Sponsoring Member for Sponsored Member Clients seeking to participate in cleared repo via the new Sponsored GC Service.