DTCC Launches FICC’s CCLF Public Calculator | Bonds & Fixed Income

DTCC, the premier post-trade market infrastructure for the worldwide financial companies industry, has introduced the launch of FICC’s interactive, public-facing Capped Contingency Liquidity Facility (CCLF) Calculator.

With the growth of central clearing in U.S. Treasuries on the horizon and given the dimensions of transactions within the U.S. Treasury market – now exceeding USD $7 trillion each day – CCLF is a important risk management instrument used for managing DTCC’s Fastened Earnings Clearing Company’s (FICC) liquidity risk arising from settlement exercise. Market members can enter their present distinctive settlement exercise into the calculator to estimate and perceive the CCLF-related liquidity obligations that might come up from membership.

CCLF is a rules-based liquidity useful resource facility that would supply FICC with further liquid financial sources to fulfill its money settlement obligations within the occasion of a default of the most important GSD household of affiliated Netting Members. To anticipate this potential funding need, GSD Netting Members incorporate their individually decided CCLF obligation quantities into their own liquidity plans. Whereas the CCLF obligation is a dedicated obligation for the Netting Members, FICC doesn’t require pre-funding or deposits of the duty quantity. As a substitute, as an ongoing FICC membership requirement Netting Members present up-front attestations concerning their capacity to supply such CCLF quantities.

“By providing the public CCLF calculator, we continue to increase transparency into our financial risk management program, empowering potential members to understand their role and obligations as a FICC GSD member,” Tim Hulse, Managing Director, Monetary Threat & Governance at DTCC. “CCLF provides a critical backstop to address the financial impact of volatility and stress across repo markets while safeguarding the industry and individual members.”

The new CCLF calculator, accessible on dtcc.com, requires a sequence of information factors to be offered by customers. As soon as entered on screen, the calculator processes the information factors utilizing the prevailing GSD CCLF engine logic, delivering an estimated particular person CCLF obligation.

“FICC recognizes that many firms are considering membership with GSD to comply with the final SEC rule on expanded clearing of U.S. Treasury activity,” mentioned Claire Lough, Govt Director, Monetary Threat & Governance at DTCC. “This calculator will enable market participants to simulate their potential CCLF obligations to assist in understanding what is required of a GSD Netting Member.”

FICC is the main supplier of trade comparability, netting and settlement for the Authorities Securities market. As half of its dedication to the industry, DTCC continues to evaluate calculators, instruments and enhanced entry strategies to best assist the growth of U.S. Treasury clearing exercise.