Discussion Paper
The Rise of Sponsored Service for Clearing Repo
Abstract: Recently instituted rule amendments have initiated a large migration of dealer-to-client Treasury repurchase trades to central clearing. To date, the main avenue used to access central clearing is Sponsored Service, a clearing product that has, until now, received little attention. This post highlights the results from a recent Staff Report which presents a deep dive into Sponsored Service. Here, we summarize the description of the institutional details of this service and its costs and benefits. We then document some basic facts on how market participants use this service, based on confidential data.
JEL Classification: G1; G18; H63;
https://doi.org/10.59576/lse.20251008
Access Documents
File(s):
File format is text/html
https://libertystreeteconomics.newyorkfed.org/2025/10/the-rise-of-sponsored-service-for-clearing-repo/
Description: Full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2025-10-08
Number: 20251008