Solutions
Sponsored member repo (FICC)
Our sponsored member repo offering provides access to highly liquid investment and financing at competitive rates with the benefit of reduced counterparty credit risk.
We collaborated with the Fixed Income Clearing Corporation (FICC) in 2005 to establish their cleared repo offering, which first permitted US mutual funds to clear overnight reverse repos versus US Treasury and Agency collateral. Our offering has maintained a market-leading position as a result of continuous expansion to new types of market participants, jurisdictions, and use cases.
Sponsored member benefits
Sponsored member repo allows buy-side firms to unlock the benefits of centrally cleared repo without needing to satisfy the obligations of a direct clearing member. Our solution merges competitive pricing and stable liquidity to diverse mix of sponsored members. In addition to credit intermediation and sponsorship, we manage custody, infrastructure and trade processing activity with FICC.
Our market leadership
We offer overnight, term investment and financing solutions, accommodating both delivery versus payment (investment and financing) and triparty settlement (investment only). We serve more than 150 clients and 1,950 individual entities. Our expanded service supports 16 jurisdictions.
Proven source of liquidity
Regulatory initiatives, introduced to protect the stability of the global financial services ecosystem, have ultimately served as a catalyst for the cleared repo market. Sponsored, centrally-cleared repo — popular for its credit intermediation and accessibility profile — has proven to be an essential liquidity component for buy-side cash investors and cash borrowers alike.
Why State Street
As a market leader in gross sponsored cleared volume, we have sponsored clients’ FICC repo activity for more than 17 years. We were the first Sponsoring Member to support cash borrowers and non-US entities, and we continue to innovate. At the end of the second quarter of 2023, our total gross repo volumes exceeded US$320 billion, serving more than 150 clients across 16 eligible jurisdictions. We are proud of our depth of regulatory understanding in each jurisdiction we serve and have dedicated technical specialists on hand to assist clients. As a highly rated trust and processing bank, we have evolved to meet the changing needs of our customers.
