State Street Provides Clients Record Access to Cleared Repo Financing
August 15 2019 - 11:19AM
Business Wire
State Street Corporation (NYSE: STT), today announced that it
has sponsored a record $140 billion in repo investment volumes as a
result of its partnership with the Fixed Income Clearing
Corporation (FICC). In 2005, State Street partnered with FICC to
launch its Sponsoring/Sponsored Member Repo Program, whereby a bank
netting member of the clearing house could sponsor eligible US
mutual funds to clear their repos with FICC.
With the evolution of the FICC program, and specifically the
rule changes in 2017 and 2019 permitting additional sponsoring and
sponsored member client types, FICC’s aggregate cleared repo and
reverse repo volumes have risen substantially.
As a designated Systemically Important Financial Market Utility
(SIFMU), FICC is required to maintain prescribed risk management
standards and is subject to heightened regulatory oversight,
factors that play a critical role in participants’ assessment of
their counterparty risk. US money market funds have been
particularly active buy-side participants recently; corporations,
hedge funds, insurance companies, and state and local governments
are taking notice.
“The growth in sponsored member repo through FICC has been
transformational in the actively managed cash marketplace,
providing cash investors and cash borrowers critical and stable
liquidity,” says Gino Timperio, head of Funding and Collateral
Transformation at State Street. “I believe we're in the early
stages of a sustained growth trajectory, from which our clients and
the overall market will continue to benefit.”
“UBS was an early adopter of Sponsored Repo [with State
Street],” says Rob Sabatino, Head of Liquidity Investments at UBS
Asset Management. “The growth of sponsored repo volumes within FICC
highlights demand from both cash investors and borrowers for a
highly efficient, centrally cleared solution and I anticipate the
next wave of growth will be from corporations, local government
investment pools, and offshore entities managing US dollars.”
State Street continues to work closely with the FICC and other
central clearing counterparties to expand the eligibility of
cleared collateral options, jurisdictions and tenors, to further
support clients’ liquidity and financing needs.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors,
including investment servicing, investment management and
investment research and trading. With $32,754 billion in assets
under custody and administration and $2,918 billion* in assets
under management as of June 30, 2019, State Street operates
globally in more than 100 geographic markets and employs
approximately 40,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold
ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $36
billion as of June 30, 2019), for which State Street Global
Advisors Funds Distributors, LLC (SSGA FD) serves as marketing
agent; SSGA FD and State Street Global Advisors are affiliated.
State Street Corporation One Lincoln Street, Boston, MA
02111-2900.
The whole or any part of this work may not be reproduced, copied
or transmitted or any of its contents disclosed to third parties
without State Street’s express written consent.
© 2019 State Street Corporation - All Rights Reserved
Expiration Date: 8/31/2020
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version on businesswire.com: https://www.businesswire.com/news/home/20190815005483/en/
Nina Korfias +1 617 662 0575 KKorfias@StateStreet.com
@StateStreet
Brendan Paul +1 617 662 2903 BPaul2@StateStreet.com
@StateStreet
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