Welcome to the Government Securities Division (GSD) section of the Learning Center!DTCC FICC GSD thumbl

The GSD Learning Center is designed as an educational resource to better equip Fixed Income Clearing Corporation's (FICC's) Government Securities Division (GSD) Netting Members and stakeholders with the tools needed to best use GSD's services.

US Government Securities is the largest sector of the fixed income market. The GSD acts as a CCP providing clearance, settlement and risk management services to its’ Netting Members in the U.S. Government Securities market. In addition to Netting Member services, GSD services another category of members known as Comparison-only members. GSD’s comparison services for Comparison-only members, does not include netting or settlement services for their trades. 

Participating members include banks, Inter-Dealer Brokers (IDBs), dealers, Government Securities Issuers, Foreign Persons and Registered Clearing Agencies who meet GSD’s membership requirements.

Currently GSD supports two primary products, Delivery vs. Payment (DVP) and GCF Repo®. GSD processes several types of transactions including buy/sell trades of U.S. Government securities, both dealer to dealer and broker to dealer Repos including overnight, forward-start and term Repo trades, Treasury Auction Takedown trades and GCF Repo transactions.

To learn more about GSD products and services, please select a topic that you would like to learn about from the dropdown menu located to the left of this article. 

 

This simulation is designed to help you navigate through the process of accessing reports in Report Center. 

Category: DVP Service
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This simulation is designed to help you navigate through the process of affirming a DVP Trade as a Dealer or a...

Category: DVP Service
Views: 14

This simulation is designed to help you navigate through the process of entering a DVP Repo or Reverse Repo Trade...

Category: DVP Service
Views: 16

This simulation is designed to help you navigate through the Dealer Login Home Page. 

Category: GCF Repo Service
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Category: DVP Service
Views: 11

Category: DVP Service
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Category: DVP Service
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Category: GCF Repo Service
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If you are interested in learning more about membership to DTCC or any of its' subsidiaries (FICC or NSCC for...

Category: Government Securities Division (GSD)
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If you are interested in learning more about FICC's GSD Netting Member benefits, check out this video.

Category: Government Securities Division (GSD)
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If you are interested in learning more about FICC's GSD services or have plans to apply for membership, check out this...

Category: Government Securities Division (GSD)
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Category: GSD Risk Management
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Category: GSD Risk Management
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Category: GSD Risk Management
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This video provides and overview of the Clearing Fund Components which are apart of GSD's Risk...

Category: GSD Risk Management
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Category: GSD Risk Management
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Category: GSD Risk Management
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Category: GSD Risk Management
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This video presentation explains the loss allocation methodology for the Government Securities Division (GSD).

Category: GSD Risk Management
Views: 34

This simulation is designed to help you navigate through the process of disaffirming a pending affirm GCF...

Category: GCF Repo Service
Views: 17

This simulation is designed to help you navigate through the process of modifying a GCF Repo® Trade as a Dealer.

Category: GCF Repo Service
Views: 11

This simulation is designed to help you navigate through the process of searching for a GCF Repo® Trade as a...

Category: GCF Repo Service
Views: 13

This simulation is designed to help you navigate through the process of canceling an affirmed GCF Repo® Trade as...

Category: GCF Repo Service
Views: 10

This simulation is designed to help you navigate through the Dealer View Overall Position Monitor screen.

Category: GCF Repo Service
Views: 16

This simulation is designed to help you navigate through the Broker View Overall Position Monitor screen.

Category: GCF Repo Service
Views: 15

This simulation is designed to help you navigate through the process of modifying a GCF Repo® Trade as a Broker.

Category: GCF Repo Service
Views: 10

This simulation is designed to help you navigate through the process of searching for a GCF Repo® Trade as a...

Category: GCF Repo Service
Views: 8

This simulation is designed to help you navigate through the process of entering a GCF Repo® Trade as a Broker.

Category: GCF Repo Service
Views: 33

This simulation is designed to help you navigate through the process of canceling a GCF Repo® Trade as a...

Category: GCF Repo Service
Views: 8

This simulation is designed to help you navigate through the Broker Login Home Page. 

Category: GCF Repo Service
Views: 8

This simulation is designed to help you navigate through the process of affirming a GCF Repo® Trade as a...

Category: GCF Repo Service
Views: 18

This simulation is designed to help you navigate through the Login Home Page. 

Category: DVP Service
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This simulation is designed to help you navigate through the the Obligations Query screen.

Category: DVP Service
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This simulation is designed to help you navigate through the process of searching for a DVP Repo Substitution as...

Category: DVP Service
Views: 21

This simulation is designed to help you navigate through the Advisories Split-View Query screen. 

Category: DVP Service
Views: 10

This simulation is designed to help you navigate through the process of searching for a DVP Trade. 

Category: DVP Service
Views: 4

This simulation is designed to help you navigate through the process of modifying a DVP Repo Trade as a...

Category: DVP Service
Views: 8

This simulation is designed to help you navigate through the process of modifying a DVP Cash (Buy / Sell) Trade...

Category: DVP Service
Views: 6

This simulation is designed to help you navigate through the process of entering a multiple allocation DVP Repo...

Category: DVP Service
Views: 10

This simulation is designed to help you navigate through the process of entering a single allocation DVP Repo...

Category: DVP Service
Views: 6

This simulation is designed to help you navigate through the process of entering a DVP Repo or Reverse Repo Trade...

Category: DVP Service
Views: 13

This simulation is designed to help you navigate through the process of entering a when issued DVP Trade as a...

Category: DVP Service
Views: 9

This simulation is designed to help you navigate through the process of entering a DVP Cash (Buy / Sell) Trade as...

Category: DVP Service
Views: 12

This simulation is designed to help you navigate through the process of canceling a DVP Trade as a Dealer or a...

Category: DVP Service
Views: 4

This simulation is designed to help you navigate through the process of saving column sets in the Trade Search Query...

Category: DVP Service
Views: 4

This simulation is designed to help you navigate through the process of saving query searches and column sets in the...

Category: DVP Service
Views: 9

This section provides a central location for all the GSD related FAQs and their answers as found throughout the Government Securities Division (GSD) section of the Learning Center.  To view most of the FAQs in this section you must first be logged in.

 

GCF Repo® Billing FAQs

GCF Repo® FOS FAQs

GCF Repo® FOS Key Terms FAQs

GCF Repo® Risk Management FAQs

General DVP FAQs

 


It will affect forward cash trades (Buy / Sell) of floating rate issues that have not reached settlement date. It will also affect trades of floating rate issues when the reset date has occurred between submission date and settlement date. The system modification will accommodate and support Agency Floating / Adjustable Rate debt debentures issued by FNMA, Freddie Mac and / or GNMA. The GSD currently supports the fixed income issues of these products and is seeking to expand its product offerings to support floating and / or adjustable rates securities as well. 

 

Traditionally government notes pay a fixed rate of interest to investors. A floating rate note would pay interest that would be adjusted to match market rates aligned by a market index. 

 

The interest rate (or the yield) on a bond falls when prices rise. A negative yield means investors are effectively paying the bond issuer to borrow money from them if held to maturity. 

To learn more, check out the video on negative rate yields.

GSD has modified its DVP RTTM® Web application to accept Floating / Adjustable Rate Notes, allow for changing rates. This data will be reflected in the output to participants. 

No. A negative real rate of interest occurs when the rate of inflation exceeds the nominal interest received whereas a negative bond yield means that the returns you will receive are negative in nominal terms. 

 

 

The US Treasury is considering auctioning T-Bills at negative yields. This is due to T-Bills trading at a negative yield in the secondary market. The Fed decided at its May 2012 refunding meeting to not go forward at that time.

 

 

GSD would need to be able to accept negative yield cash trades for When Issued TBills, TIPS, Notes and Bonds submitted by FICC GSD Members using existing input methods, mitigate risk on these instruments and report the same back on all current output. However, because of the current low rate environment several other instruments have recently traded at a negative yield, GSD has decided to investigate modifying its systems to include negative yield trades for other instruments. 

 

 


DVP FOS FAQs 

DVP FOS Key Terms FAQ 

General GSD Risk Management FAQs

FICC Customer Reporting (FIR) FAQs

 

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