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2021-01324 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of No Objection To Advance Notice To Include Same-Day Settling Trades in the Risk Management, Novation, Guarantee, and Settlement Services of the Government Securities Division's Delivery-Versus-Payment Service, and Make Other Changes
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January 22, 2021
Type:Notice
Citation:86 FR 6724
Reading Time:about 30 minutes
In the Federal Register, the Securities and Exchange Commission (SEC) announced it has no objections to the Fixed Income Clearing Corporation's (FICC) proposal to enhance its system for settling trades in U.S. Treasury securities. The proposal includes expanding FICC's central counterparty services to cover both the start and end of same-day repurchase agreements known as "repos," which aims to reduce settlement fails and improve efficiency. Additionally, FICC introduced a Pair-Off Service to help members settle their failed obligations more efficiently, minimizing market risks by allowing them to resolve these by the end of each day. The changes are expected to support financial stability by reducing systemic risks and promoting effective risk management.
Simple Explanation
The SEC gave the green light to some changes by a company that helps make buying and selling government money stuff safer and faster, like making sure everyone gets what they agreed to on the same day, which is like making sure all toys are shared properly before bedtime.
2021-01587 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving Proposed Rule Change To Include Same-Day Settling Trades in the Risk Management, Novation, Guarantee, and Settlement Services of the Government Securities Division's Delivery-Versus-Payment Service, and Make Other Changes
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January 26, 2021
Type:Notice
Citation:86 FR 7159
Reading Time:about 28 minutes
In a recent decision, the Securities and Exchange Commission (SEC) approved a rule change for the Fixed Income Clearing Corporation (FICC). This amendment allows FICC to manage same-day settling repurchase agreements (repos), improving the efficiency of securities transactions by centralizing settlement processes. The change includes two new services: the Same-Day Settling Service, which allows for both legs of repos to settle under FICC's watch, reducing the risk of settlement failures, and the Pair-Off Service, which helps settle failed trades on the same day they occur, decreasing overnight risk for members. This update aims to streamline the settlement of securities transactions and minimize risks associated with settlements.
Simple Explanation
The SEC has approved a change that lets a company called FICC handle money deals faster on the same day to make things run smoother and safer. This helps to stop problems if trades don't go as planned because FICC takes care of everything right away.

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