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DTCC Highlights Need For Increased Adoption Of Central Clearing In U.S. Treasury Market To Reduce Risk And Improve Resiliency - New White Paper Explores Risks Posed By Fragmentation Of U.S. Treasury Market And Details Benefits Of Central Clearing


Date
25/05/2021
The Depository Trust & Clearing Corporation (DTCC), the premier market infrastructure for the global financial services industry, today released a new white paper that explores the risks created by U.S. Treasury market fragmentation. The paper, 
,
 examines growing concerns around the increased adoption of bilateral clearing for Treasury activity and details the benefits of unifying the market under a central clearing model.
 
Today, Treasury market activity is split between two disparate clearing processes: bilaterally cleared transactions, and centrally cleared transactions via DTCC’s Fixed Income Clearing Corporation (FICC). According to the white paper, interdealer brokers (IDBs) are frequently executing transactions between FICC members and non-FICC members, in which one side of the trade is centrally cleared and the other is bilaterally cleared. The paper notes that this fragmentation is creating “contagion risk,” in par ....

Murray Pozmanter , Head Of Clearing Agency Services , Clearing Corporation , Income Clearing Corporation , Federal Reserve , Depository Trust , More Clearing , Less Risk , Increasing Centrally Cleared Activity , Cash Market , Principal Trading Firms , Clearing Agency Services , Global Business Operations , Ettlement Clearing , அழித்தல் நிறுவனம் , வருமானம் அழித்தல் நிறுவனம் , கூட்டாட்சியின் இருப்பு , வைப்புத்தொகை நம்பிக்கை , குறைவாக ஆபத்து , பணம் சந்தை , உலகளாவிய வணிக செயல்பாடுகள் ,