Insights
Centrally cleared repo market brief
Through innovative and flexible cash investment and financing solutions, we provide both our custody and third-party clients access to the Fixed Income Clearing Corporation (FICC) sponsored repo platform.
Given the interconnectivity between repo markets, monetary policy and macroeconomic trends, we want to help you stay up to date on what’s happening in the market with a specific focus on the rapidly growing sponsored segment. With views on recent market trends and what to expect in the future, our quarterly briefs give you the insight you need to unlock the benefits of centrally cleared repo.
January 2026
Highlights from this quarter
- Volatile rate expectations and uncertainty fueled by the government shutdown drove incremental cash to the short-end, even as the Federal Reserve cut rates three times in the second half of 2025.
- With short-end volumes rising, strong net United States Treasury (UST) issuance and year-end funding pressures ramping up, cleared UST repo (FICC Sponsored) volumes continued to rise, and cash borrower (primarily hedge fund) activity continued to be a major growth area.
- Looking ahead, the path of Fed easing and Treasury debt issuance will dictate the supply-demand dynamic in short-end markets – although timing remains uncertain.
