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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 a market leader in gross sponsored cleared volume1, we’ve sponsored clients’ FICC repo activity for more than 17 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

  • Offering overnight, term investment and financing solutions, accommodating both DVP (investment and financing) and tri-party settlement (investment)
  • Approximately $150 billion in sponsored repo balances
  • Serving more than 135 clients and more than 1,950 individual entities
  • Expanded service supports 15 jurisdictions

[1] As of December 31, 2021
[2] As of September 30, 2021 from DTCC Q3 2021 Financials
[3] As of December 31, 2021