2026-08389NoticeWallet

SEC OKs FICC's $10B Commercial Paper Boost for Defaults

Published Date: 4/30/2026

Notice

Summary

The Fixed Income Clearing Corporation (FICC) got the green light to raise up to $10 billion by selling short-term commercial paper to big investors. This extra cash will boost FICC’s safety net to handle member defaults and keep the financial system steady. The change kicks in soon, helping FICC stay ready for any surprises in the market.

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

More Liquidity to Reduce Systemic Risk

The commercial paper program will add prefunded default liquidity to FICC's existing resources to help it complete end-of-day settlement if a member defaults. The program is intended to diversify liquidity sources, reduce reliance on members, and help lower the risk of loss contagion that could threaten broader financial stability.

FICC Authorized to Issue $10 Billion Commercial Paper

FICC may sell up to $10 billion of short-term commercial paper to institutional investors (for example, qualified institutional buyers and institutional accredited investors). The paper would have maturities up to 397 days (average 3–6 months), an expected average outstanding amount of $2–3 billion, pay interest at market rates, and the proceeds would be used only to provide default liquidity for member defaults.

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Key Dates

Effective Date
Published Date
4/27/2026
4/30/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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