FICC
Fixed Income Clearing Corporation
DTCC subsidiary providing clearing and settlement services for US government securities and mortgage-backed securities markets.
FICC operates two divisions: Government Securities Division (GSD) clearing Treasury and agency securities, and Mortgage-Backed Securities Division (MBSD) clearing agency mortgage-backed securities. The corporation provides multilateral netting, risk management, and settlement services for the largest fixed income markets in the world. FICC uses real-time risk monitoring, margin collection, and stress testing to manage counterparty risk. The organization processes over $280 trillion in transactions annually across both divisions. FICC plays a systemically important role in US financial markets by ensuring smooth functioning of government securities and mortgage markets. The corporation has enhanced its risk management capabilities and expanded services following market stress events.
Example
Treasury bond trade clearing, agency MBS settlement, repo transaction netting