DTCC’s New Collateral Service Transforms Repo Market Clearing

A game-changer for repo markets: DTCC’s latest service slashes costs and simplifies compliance. How will it reshape central clearing under stricter regulations?

, and Administrator

2026 January 5 . 1:05 AM

1 min read

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DTCC’s New Collateral Service Transforms Repo Market Clearing

The Depository Trust & Clearing Corporation (DTCC) has launched its new Collateral-in-Lieu (CIL) service through BNY’s Global Collateral Platform. The first trade, completed with Federated Hermes, marks a key development in central clearing for the repo market.

The CIL service went live with a repo transaction between BNY Securities Finance and Federated Hermes. This launch aligns with the industry’s push toward mandatory clearing under the SEC’s U.S. Treasury clearing rule.

The service aims to cut duplicative margin demands and simplify operations for firms. It also boosts market liquidity while helping participants meet stricter regulatory standards. DTCC’s Laura Klimpel highlighted the innovation as part of their focus on margin and capital efficiency. BNY’s Nehal Udeshi added that the service expands capacity for client trades and supports the shift to central clearing. Nate Wuerffel from BNY called it a significant advancement in the move toward centralised systems. Federated Hermes’ Susan Hill noted that the CIL service broadens access to cleared repo, delivering client value amid changing regulations. DTCC expects wider adoption in the coming months as firms prepare for the SEC’s full clearing requirements.

The CIL service is now operational, offering a streamlined approach to margin and compliance. Market participants can use it to reduce costs and improve efficiency as regulatory deadlines approach.