Within the GCF Repo Service section of the Learning Center, you can learn about:
- GCF Repo Generic CUSIP Numbers,
- the DTCC GCF Repo Index®,
- GCF Repo Trade Comparison,
- GCF Repo Netting and Settlement, and
- GCF Repo Funds-Only Settlement (FOS).
The GCF Repo Service enables participating Members to trade general collateral repos, based on rate, term, and underlying product, throughout the day on a blind brokered basis without requiring intraday, trade-for-trade settlement on a Delivery-versus-Payment (DVP) basis.
To participate, users must be Netting Members of FICC’s Government Securities Division (GSD). Netting Members execute GCF Repos through GCF-Authorized Inter-Dealer Brokers, who are also Members of GSD, on an anonymous or “blind” basis. GCF-Authorized Inter-Dealer Brokers are deemed Locked-In Trade Sources who are required to submit trade data on GCF Repo Transactions to FICC shortly after trade execution. Upon receipt of the trade data from the GCF-Authorized Inter-Dealer Brokers, FICC immediately reports the transaction details to the GCF Counterparties. The details on GCF Repo Transactions are simultaneously displayed on GSD’s RTTM® Web application where GCF Counterparties can view the trade details and either affirm or cancel trades submitted against them on the same day.
When GSD receives trade data from Locked-In Trade sources, GSD becomes the settlement counterparty to each GCF Counterparty through the novation process. GCF Repo Transactions are settled on a tri-party basis, which requires GCF Counterparties to have an account with GSD’s GCF Clearing Agent Bank(s).
Participating Members of the GCF Repo Service can trade in GCF Repo Generic CUSIP Numbers throughout the day. GCF Repo Transactions are netted after the cutoff for trade submissions, per the Schedule of GCF Repo Timeframes in the pdf FICC GSD Rulebook . Once the netting process has concluded, output is generated and sent to GSD’s GCF Clearing Agent Bank. Output is also generated for the GCF Counterparties who must fulfill their collateral obligations and/or fund their cash obligations in GCF shells utilizing GSD’s GCF Clearing Agent Bank’s tri-party mechanism (CCIT™). Once the obligations for each GCF shell is met, the Members have satisfied their net settlement obligations.
Eligible Collateral Types
The following collateral types are currently accepted for GCF Repos:
- U.S. Treasury Bills, Bonds and Notes,
- U.S. Treasury Inflation Protected Securities (TIPS),
- Fixed- and adjustable-rate mortgage-backed securities issued by Fannie Mae, Ginnie Mae and Freddie Mac,
- Non-mortgage backed securities issued by government-sponsored enterprises, such as the Federal Home Loan Bank, Federal Farm Credit Banks, and Federal Home Loan Mortgage Corporation (Freddie Mac), and
- STRIPS (STRIPS are U.S. Treasury and agency securities that have had the interest payment coupons separated or “stripped” from the principal, creating zero-coupon securities and separate payment securities from what was originally a single Treasury bond or note).