FICC Rolls Out Collateral Swap: Easier Bond Trading Ahead
Published Date: 9/15/2025
Notice
Summary
The Fixed Income Clearing Corporation (FICC) is rolling out a new way for members to use collateral in their Sponsored GC Service and letting sponsoring members clear special "done-away" trades between other parties. This change helps more folks join in and makes clearing smoother, with no big cost changes announced yet. If you’re a member or work with one, get ready for these fresh options coming soon!
Analyzed Economic Effects
7 provisions identified: 4 benefits, 2 costs, 1 mixed.
Possible Clearing Fund Deposit—$1M Minimum
In certain situations FICC may require a Sponsoring Member to post a Sponsored GC CIL Omnibus Account Required Fund Deposit equal to the greater of $1,000,000 and the sum of applicable charges (VaR Charge, Portfolio Differential Charge, and other charges). This requirement applies only where specific conditions are met (e.g., the account records trades for which the GC Funds Borrower is the Sponsoring Member or a Segregated Indirect Participant and that Sponsoring Member has a Segregated Indirect Participants Account).
New CIL Service to Cut “Double Margining”
FICC is creating a Collateral-in-Lieu (CIL) offering that lets a Sponsored Member (a CIL Funds Lender) grant FICC a lien on Purchased GC Repo Securities so FICC can use those securities to settle if the lender or its sponsor defaults. That lien is intended to largely remove the need for FICC to collect initial margin and to reduce the regulatory capital and funding costs Sponsoring Members face when providing access to RICs and other cash providers.
Done-Away Sponsored GC Trades Allowed
FICC will expand the Sponsored GC Service so a Sponsoring Member may submit a “done-away” Sponsored GC Trade (i.e., a repurchase trade between its Sponsored Member and another Netting Member or an indirect participant) for clearing. That change increases the pool of possible counterparties for Sponsored Members and aims to facilitate greater access to FICC clearing and settlement.
No Twice-Daily Funds-Only Payments Required
The CIL Service would not require Sponsored Members to exchange Funds-Only Settlement Amount payments with FICC for Sponsored GC CIL Trades, avoiding the twice-daily funds-only transfer requirement that many RICs and other cash providers cannot operationally support. Instead, Sponsoring Members historically would satisfy and receive such amounts, but the new service removes FICC's need to collect Funds-Only Settlement Amounts for these trades.
Minimum 2% Initial Haircut Requirement
FICC will require a Sponsored GC CIL Trade to have an Initial Haircut no less than 2 percent of the Start Leg Contract Value (the “CIL Required Haircut”), or such other amount FICC determines, and FICC will give Netting Members at least 30 Business Days' notice of changes. This haircut is intended to provide resources to address default or liquidation scenarios where FICC cannot otherwise rely on alternative resources.
Sponsor Liability: Less Guarantee, But Termination Risk
FICC proposes that, generally, a Sponsoring Member would not guarantee the obligations of a Sponsored Member arising under a Sponsored GC CIL Trade (reducing the sponsor's guaranty exposure). However, if a Sponsoring Member exercises its termination rights under Rule 3A Section 16 to close out done-with Sponsored GC CIL Trades, the Sponsoring Member would be responsible for any Sponsored Member Liquidation Amount owed by the CIL Funds Lender.
Submit Joint-Account Trades Before Allocation
Under the CIL Service, a Sponsoring Member may submit Sponsored GC CIL Trades that were executed through a joint trading account even if the investment adviser has not yet completed the allocation among participants. This change addresses timing mismatches where allocations often cannot be completed before FICC's submission deadline and should let more joint-account transactions be cleared.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-11919 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule Concerning Equities Transaction Pricing
MEMX is changing its fees starting June 1, 2026, by lowering some rebates for certain stock trades that add liquidity, especially for hidden and price-improved orders. These updates affect traders and members who use MEMX, meaning they might earn a bit less back on some trades. The goal? Keep things fair and balanced while keeping the exchange running smoothly.
2026-11927 — Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 18.7 and 18.9 To Permit an Increase in Position and Exercise Limits for Options on IBIT
MEMX is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF (IBIT). This change affects anyone trading IBIT options and lets them handle bigger positions starting right away. It’s designed to keep MEMX competitive and support growing market interest without any immediate cost impact.
2026-11922 — Self-Regulatory Organizations; Green Impact Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.240 (Trade Reporting and Dissemination of Quotations) To Conform With Amendments to Rules 600 and 603 of Regulation NMS Approved by the Commission That Concern the Reporting and Dissemination of Odd-Lot Information, and an Additional Ministerial Change to Rule 11.220 To Correct a Typographical Error
Green Impact Exchange is updating its trade reporting rules to match new federal rules about sharing odd-lot trade info (small stock orders). They’re also fixing a tiny typo in another rule. These changes take effect right away and help keep trading info clear and accurate for everyone involved.
Previous / Next Documents
Previous: 2025-17728 — Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges
NYSE Arca is changing some fees for certain stock orders to make things simpler and fairer. They’re removing one fee for displayed orders and tweaking how fees for auction-only orders are calculated. These changes start right away and could save some traders money in the first month they trade.
Next: 2025-17730 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving of Proposed Rule Change To Revise the Definition of the Backtesting Charge
The Fixed Income Clearing Corporation (FICC) updated how it defines the Backtesting Charge, a key part of managing financial risks for U.S. government securities trades. This change affects FICC members by clarifying margin rules to keep the market safe and sound, with no extra costs or delays expected. The Securities and Exchange Commission gave the green light on September 10, 2025, so the new rules are ready to roll.