Funding and Collateral Solutions

Centrally Cleared Repo Market Brief

A quarterly update on the developments in the centrally cleared sponsored repo market

July 2020

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.

Highlights from this quarter:

  • Sponsored repo continues to be a go-to cash investment and funding outlet for firms in today’s changed market.
  • The second quarter of 2020 started off with a bang as the proliferation of COVID-19 drove risk-off tones and a flight to quality in global markets.
  • Aggregate sponsored repo volumes within the Fixed Income Clearing Corporation’s program reached a high of US$564 billion in March, remained elevated at US$517 billion in April and started to come off in May, which printed a high of US$396 billion.
 
FICC Sponsored Volume (US$B)