The Same-Day Settling Service expanded the capabilities of Fixed Income Clearing Corporation’s (“FICC”) Government Securities Division’s (“GSD”) central clearing services, to allow for Members’ eligible and compared Same-Day Settling Trades (inclusive of Brokered Repo Transactions) that are transacted under an Eligible Netting Security to be included in the risk management, novation, and settlement services of the DVP Service. As these transactions are Same-Day Settling Trades, they will not go through the netting process prior to their original Scheduled Settlement Date.
An SDS trade is:
- a Start Leg of a Netting Member’s Repo Transaction where the Scheduled Settlement Date of the Start Leg is the current Business Day,
- an As-Of Trade of a Netting Member where the Scheduled Settlement Date of the Start Leg is the previous Business Day and the End Leg is the current Business Day or thereafter, and
- a done-away Sponsored Member Trade that meets the requirements of either (i) or (ii) above.
The Same-Day Settling Service is voluntary for Inter-Dealer Broker Netting Members but is mandatory for all other Netting Members and Sponsored Members who execute transactions with Netting Members other than their Sponsoring Member.
In addition to the Same-Day Settling Service, GSD offers an optional Pair-Off Service, whereby GSD systematically pairs off eligible Members’ unsettled Securities Settlement Obligations.
Please refer to the GSD Same-Day Settling Service Documentation section found on this page for more details. Readers must log on to the DTCCLearning.com site in order to access the documentation listed below.