SPONSORED GENERAL COLLATERAL SERVICEOVERVIEW
To better serve clients, FICC continues to expand the capabilities of the Sponsored Service. The Sponsored General Collateral (GC)
service allows Sponsoring Members and their Sponsored Members1 and their Sponsored Member Clients to execute repo transactions
with each other on a general collateral basis in the same asset classes as are currently eligible for Netting Members in FICC’s existing
GCF Repo® Service.
Such repo transactions are allowed to settle on the tri-party repo platform of BNY Mellon in a similar manner to the way Sponsoring
Members and Sponsored Members settle tri-party repo transactions with each other outside of central clearing, thereby making it
more operationally efficient for them to submit for central clearing repo transactions (including term repo transactions)with each other.
The service contributes to and improves the operational efficiency, overall resiliency, and capacity of the repo market by increasing
access to liquidity, encouraging inclusion of more term repo activity in the clearing corporation, and enhancing risk management
practices through broader access to central clearing.

BENEFITSThe Sponsored GC service offers the following benefits to Sponsoring Members, Sponsored Members and the U.S. financial market:■

Reduction of Counterparty Risk: Central clearing reduces counter-party risk through FICC’s guarantee of the completionof settlement in a Member default scenario.

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Balance Sheet and Capital Relief Opportunities: Central clearing these repo transactions at FICC could alleviate constraints on
Members by enabling them to reduce capital usage via novation and balance sheet netting.

■Market Liquidity: the service may allow eligible institutional firms to engage in greater activity than otherwise feasible outside ofcentral clearing, thereby promoting greater market liquidity and the potential for increased returns.

WHO CAN USE IT - SPONSORED MEMBER ELIGIBILITY
Any legal entity from an FICC-approved jurisdiction that satisfies the Qualified Institutional Buyer (QIB) standard and has at least
one Sponsoring Member2 willing to sponsor it into FICC membership is eligible to participate in the Sponsored GC service asa Sponsored Member.

1

This document should not be regarded as a substitute for the Rulebook of the Government Securities Division (GSD) of FICC. In all cases, Members should refer to theFICC/GSD Rulebook for a complete statement of FICC’s rules, procedures, obligations, and requirements. Nothing in this document shall be deemed to impose any
obligations on FICC that are not set forth in the FICC/GSD Rulebook, and in the case of any discrepancy between this document and the FICC/GSD Rulebook, the FICC/GSD Rulebook shall govern. The FICC/GSD Rulebook is available at http://www.dtcc.com/legal/rules-and-procedures.aspx.

2To view a list of current Sponsoring Members clients, click here, and filter by “Omnibus” in the Member Name column.

ADVANCING FINANCIAL MARKETS. TOGETHER.™

HOW THE SERVICE WORKSThe Sponsored General Collateral (GC) service allows Sponsoring Members and their Sponsored Member clients to submit for central
clearing repo transactions executed with each other in the following new Generic CUSIP Numbers (Sponsored GC CUSIP Numbers):
Sponsored GC CUSIP Number■

Description

84910LAB2

U.S. Treasuries < 10 Yr Maturity

84910LAA4U.S. Treasuries < 30 Yr Maturity

84910LAC0Non-Mortgage Backed U.S. Agency Securities

84910LAD8Fannie Mae and Freddie Mac Fixed Rate Mortgage-Backed Securities

84910LAE6

Fannie Mae and Freddie Mac Adjustable Rate Mortgage-Backed Securities

84910LAF3Ginnie Mae Fixed Rate Mortgage-Backed Securities

84910LAG1

Ginnie Mae Adjustable Rate Mortgage-Backed Securities

84910LAH9

U.S. Treasury Inflation Protected Securities (“TIPS”)

84910LAJ5

U.S. Treasury STRIPS

Collateralization: Each Sponsored GC Trade is required to be fully collateralized with securities eligible under the applicable
Sponsored GC CUSIP Number and/or cash.

■Settlement: Consistent with the manner in which tri-party repo transactions are settled today outside of central clearing, the Start
Leg of a Sponsored GC Trade settles on a trade for trade basis on the tri-party repo platform of BNY Mellon between the Sponsoring Member and the Sponsored Member.

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Novation: Novation to FICC of the End Leg of a Sponsored GC Trade occurs after the Start Leg of the Sponsored GC Trade has fully
settled on the tri-party repo platform of BNY Mellon by the 5:30PM NYT deadline and BNY Mellon has provided FICC a report withinformation regarding the specific securities that were delivered in Start Leg settlement.

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Repo Interest: BNY Mellon on FICC’s behalf administers the collection and payment of repo interest on a daily basis as between theSponsoring Member and Sponsored Member (deadline 12:00PM NYT, except on the Scheduled Settlement Date of the End Leg
where it will be passed as part of End Leg settlement).

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Haircuts: Consistent with the parameters of the existing Sponsored Service, a Sponsoring Member and Sponsored Member canalso elect (as a commercial matter) to transfer haircut in the form of additional collateral above 100% of the cash value lent.

FOR MORE INFORMATION
To view the Sponsored Service volumes, click here.

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The services described above are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide
such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. See www.dtcc.
com for a detailed description of DTCC, its affiliates and the services they offer. DTCC Public (White). 27142-WK09022021