Mitigating risk in a changing landscape

Abstract

In 2003 the Mortgage Backed Securities Clearing Corporation (MBSCC) and the Government Securities Clearing Corporation (GSCC) merged into the Fixed Income Clearing Corporation (FICC) under the Depository Trust Clearing Corporation (DTCC) umbrella. FICC continually searches for cost-effective ways to provide increased liquidity, risk management and other dynamic processes that help firms operate more efficiently as well as expand the population of firms that can take advantage of these benefits. This paper will outline the motivations, customer needs, regu­latory interests and market dynamics behind these initiatives, the benefits they will bring to the industry and the progress we have made so far. In addition, the author will address some of the challenges that currently face the industry and how FICC, along with its members and partners, is fashioning solutions for those as well.