FICC Contingency Liquidity Testing


On Feb. 14, FICC issued notice on annual contingency liquidity test.


  • FICC issued Notice GOV1643-24, MBS1304-24 on Capped contingency liquidity facility (CCLF) test in Apr. 2024 to satisfy requirements regarding liquidity risk management.
  • Testing Overview
  • Main objectives of test are to increase members’ awareness of capital commitment in case of CCLF event, and to assess each member’s understanding of CCLF events.
  • In addition, to test members' operations capability to process redistribution repos.
  • The Government Securities Division (GSD) and the Mortgage-Backed Securities Division (MBSD) tests will take place on same day, there will be two parts to each test.
  • Test Date
  • Part 1 of test will take place on Apr. 22, 2024; Part 2 during the week of Apr. 22, 2024.
  • Each firm will be contacted by the FICC and be provided with their Part 2 test date.

Regulators FICC
Entity Types B/D; Depo
Reference Nt GOV1643-24, MBS1304-24, 2/14/2024;
Functions Compliance; Financial; Legal; Operations; Risk; Settlement; Trading; Treasury
Countries United States of America
Category
State
Products ABS; Clearing; Fixed Income; Repo/Reverse; Securities
Regions Am
Rule Type Final
Rule Date 2/14/2024
Effective Date 4/22/2024
Rule Id 201103
Linked to N/A
Reg. Last Update 2/14/2024
Report Section US Investment

Last substantive update on 02/15/2024