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Funding and Collateral Solutions

FICC Sponsored Member Repo

Centrally cleared repo supports market capacity and helps reduce counterparty credit risk. Through the Depository Trust & Clearing Corporation (DTCC), State Street’s Sponsored Member Repo Program offers clients the opportunity to access the benefits of the Fixed Income Clearing Corporation (FICC) repo platform.

As the leader in gross cleared volume,1 we’ve sponsored clients’ FICC repo activity for more than 14 years. We were the first Sponsoring Member to support cash borrowers and non-US entities, and we continue to innovate.

  • Cash Investors: Invest your US dollar cash in repurchase transactions secured by approved collateral held in your name.
  • Cash Borrowers: Finance your US Treasuries and Agency Debentures with a stable source of US dollar cash funding.
  • Passive afternoon cash sweep: Sweep residual US dollar cash into a securitized transaction with liquid securities with a highly rated counterparty.

Sponsored Member Benefits

FICC Sponsored Member Repo allows you to unlock the benefits of centrally cleared repo without needing to satisfy all of the obligations of a direct clearing member:

  • Competitive pricing and ample capacity; proven source of stable liquidity
  • Innovative model opens new investment and liquidity access to end-user participants
    • State Street offers supportive credit intermediation, helping market realize the benefit of matching peers’ supply and demand
  • State Street meets FICC’s clearing fund requirements for clients’ sponsored activity clients are protected from loss mutualization
  • Counterparty risk reduction
    • FICC becomes counterparty upon matching and novation
    • FICC credit ratings: AA/A-1+ (Standard & Poor’s) and Aaa/P-1 (Moody’s Investor Service)2
    • FICC guarantees settlement of all matched trades
  • Operational efficiency: State Street manages infrastructure and trade processing activity with FICC
    • Agnostic to clients’ primary custody relationship(s)
    • Cash investor client collateral held in individual clients’ securities accounts, segregated from State Street’s assets

Our Market Leadership3

  • $140 billion in sponsored repo balances
  • Serving more than 70 clients and more than 1,000 individual entities
  • Expanded service supports six jurisdictions (US, British Virgin Islands, Canada, Cayman, Ireland, Luxembourg)

1. As of July 31, 2019
2. As of March 31, 2019 from DTCC Q1 2019 Financials
3. As of July 31, 2019