Fed hike behind $682m and $460m breaches at FICC

- By Alessandro Aimone
- @aimoneale
- 01 Dec 2022

The government securities division (GSD) and the mortgage-backed securities (MBS) unit of the Fixed Income Clearing Corporation (FICC) incurred two sizable initial margin breaches on September 21, following the Federal Reserve’s decision to lift its benchmark policy rate.

The GSD reported a $682 million deficiency, calculated as the size of uncovered exposures following the result of backtesting

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