Sunday, August 07, 2011

DTCC, OCC stand pat on U.S. Treasuries

Timmy Geithner reassures the President, and by extension the country (presumably) that he will NOT resign.  Strangely, DTCC and OCC haven't reversed course on their U.S. Treasuries as collateral position.

O[ption] C[learing] C[orporation] said today it has no current plans to adjust its current valuations or haircuts on Treasury Securities used as collateral in light of the Standard & Poor's rating change on U.S. sovereign debt.

The Depository Trust & Clearing Corp. told traders that its Fixed Income Clearing Corp. subsidiary would not immediately require more Treasurys to be posted to maintain required collateral levels for outstanding trades, signaling that one of the biggest U.S. clearinghouse operators did not anticipate a dramatic slide in the value of U.S. debt following the S&P downgrade.

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