FICC Sponsored Service volumes exceeded USD$2 trillion at the end of 2024, marking a new peak and an 83% year-over-year increase
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that Fixed Income Clearing Corporation’s (FICC) Sponsored Service volumes reached USD$2 trillion at the end of 2024, marking a new peak volume and an 83% year-over-year increase.
In addition, FICC’s Indirect Clearing Relationships grew to 7,200, marking a new milestone and representing a 20% growth in indirect relationships year-over-year. This growth comes as more firms begin to prepare and implement solutions to meet expanded US Treasury clearing mandate requirements.
As firms work towards readiness, indirect access models to FICC are a key enabler to access central clearing. FICC offers two indirect access models: the Sponsored Service and the Agent Clearing Service.
- Sponsored Service: FICC currently has 37 Sponsoring Members with 5,711 Sponsored Member Relationships. The service enables Sponsoring Members to facilitate the submission of their client’s trading activity in eligible securities for novation to FICC. Sponsoring Members act as operational and administrative agents on behalf of their clients and guaranty their clients’ activity to FICC.
- Agent Clearing Service: FICC currently has 26 Agent Clearing Service (ACS) Members with 1,566 Executing Firm Customer Relationships. This service enables ACS Members to submit transactions to FICC for novation on behalf of their Executing Firm Customers. ACS delivers the same benefits of central clearing as offered in other asset classes, such as the futures and derivatives clearing models.
“Our mission at FICC has always been to deliver the most efficient and robust clearing capabilities for the industry, and 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,” said Laura Klimpel, Managing Director and Head of DTCC’s Fixed Income and Financing Solutions. “We anticipate continued growth in voluntary clearing in the months ahead as firms recognize the value of clearing their trading activity at FICC.”
In addition to the volume increases and indirect relationship growth, DTCC has also been proactively spearheading efforts across the industry to deliver new efficiencies to the market, such as advancing cross-margining opportunities, as well as helping to identify and implement appropriate accounting and capital treatment for its products.
“We are pleased to see market participants joining FICC as we continue to deliver solutions that meet the unique needs of firms across segments. Feedback remains very positive on our efforts to enhance capital and liquidity efficiencies via cross-margining arrangements, margin-efficient access models and other initiatives, such as the creation of a default fund. At the same time, we’ll continue to serve our clients as their strategic partner as we introduce workflows and accounting approaches to enable capital efficiencies,” said Brian Steele, DTCC Managing Director, President, Clearing & Securities Services.
