DTCC’s $74 billion liquidity charge riles members

Some firms may stop clearing US Treasury trades if the CCLF is implemented

A man running for the exit

A proposal from the Depository Trust & Clearing Corporation (DTCC) that would require its members to contribute to a $74 billion liquidity facility could force several US Treasury market participants out of the clearing house.

The government securities division of the Fixed Income Clearing Corporation (FICC) – a subsidiary of the DTCC and the sole central counterparty for US Treasury trades and repos – wants to establish a so-called capped contingent liquidity facility (CCLF) to comply with new