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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.

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.