DTCC’s Fixed Income Clearing Corporation’s (FICC) Sponsored Service volumes reached US$2 trillion in 2024, up 83% year-on-year.
As firms prepare for new requirements around US Treasury clearing, indirect clearing relationships were up 20% to 7,200 at year-end.
Mandated central clearing in the market, which will come into force from 31 December, aims to reduce systemic risk and improve efficiency. This means that in-scope trades must be cleared through FICC.
FICC currently offers two indirect access models which allow firms to access central clearing. Through the sponsored service, which has 37 sponsored members and 5,711 sponsored member relationships, members act as operational and administrative agents and submit their clients’ trading activities for novation to FICC.
In the agent clearing service, members submit transactions to FICC for novation on behalf of executing firm clients. As of year-end, this service has 26 members and 1,566 executing firm customer relationships.
Laura Klimpel, managing director and head of DTCC’s fixed income and financing solutions, commented: “We are pleased to see continued Sponsored Service volume increases as well as momentum around our two indirect access models, which support both done-with and done-away activity. We anticipate continued growth in voluntary clearing in the months ahead as firms recognise the value of clearing their trading activity at FICC.”
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