The Depository Trust & Clearing Corporation (DTCC) today issued the following statement regarding activities of its Fixed Income Clearing Corporation (FICC) subsidiary in light of Standard & Poor’s rating change on US sovereign debt:
FICC has no current plans to make any changes in our applicable valuations of securities (or haircuts) required for collateral for its Government Securities Division (GSD) Clearing Fund and its Mortgage-Backed Securities Division (MBSD) Participants Fund at this time. We continue to monitor market developments and volatility in the coming days to assess if we will need to make any changes in our processes FICC will operate under its normal schedule for input and reporting during the week of August 8.
DTCC is confident in its ability to protect the capital markets and our members throughout a wide variety of market scenarios including this current situation.