DTCC to Create Clearinghouse for U.S. Mortgage-Backed Bonds
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The Depository Trust & Clearing Corp. received approval from the Securities and Exchange Commission to operate a clearinghouse for trading of U.S. mortgage bonds, allowing it to replicate the services it offers for U.S. Treasuries and other government-related securities.
The mortgage-backed securities division of DTCC’s Fixed Income Clearing Corp. will begin acting as a so-called central counterparty in April, the New York-based company said today in a statement distributed by Business Wire. As a CCP, the unit will guarantee settlement of mortgage-bond trades if one of the parties to agreements filed with it defaults on its commitment.