DTCC issued a press release on a "New Era of Repo Clearing." It says, "The Depository Trust & Clearing Corporation (​DTCC) ... today announced that the new Centrally Cleared Institutional Tri-​Party (​CCIT) Service of its Fixed Income Clearing Corporation (​FICC) subsidiary is live, and the first trade has been executed between Citadel and Morgan Stanley. Since the U.​S. Securities and Exchange Commission (​SEC) approved rule changes last month that allow institutional investors to participate directly in the clearinghouse through CCIT membership, FICC has been working with dealers and cash lenders -- including corporations, asset managers, insurance companies, sovereign wealth funds, pension funds, municipalities and state treasuries -- to prepare all the necessary documentation and agreements to begin this next stage in the evolution of the repo market." Murray Pozmanter, DTCC Managing Director and Head of Clearing Agency Services, says, "We are very pleased to have been able to work with Citadel and Morgan Stanley to take this next step to make CCIT a reality. With a greater number of market participants leveraging the clearinghouse through the CCIT Service, we are able to strengthen both the safety and efficiency of the tri-​party repo marketplace." The release adds, "The new CCIT membership expands the availability of central clearing in the repo market and extends central counterparty (​CCP) services and the guaranty of the completion of eligible tri-​party repo transactions between its dealer members and eligible institutional cash lenders. Expanding the CCP guaranty to a broader number of participants would lower the risk of diminished liquidity in the tri-​party repo market caused by a large scale exit of participants in a market stress situation. The expanded membership also means more trading activity with a failed counterparty can be centrally liquidated in an orderly manner by FICC, which would reduce the risk of "​fire sales" that drive down asset prices and spread stress across the financial system."

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