FICC-GOV & FICC-MBS Alert! Capped Contingency Liquidity Facility (“CCLF”) Annual Attestation. GSD & MBSD Clearing Members Given Deadline of Sep 20, 2023 to Certify CCLF Obligations. CCLF is a financial safety net.

https://www.dtcc.com/-/media/Files/pdf/2023/7/10/GOV1509-23.pdf

Wut mean?

Netting Members of the Government Securities Division (GSD) must submit their Officers' Certificate relating to CCLF obligations by September 20, 2023.
The Officers' Certificate certifies that Netting Members have included their Individual Total Amount (financial obligation under CCLF) in their liquidity plans.
Failure to submit the certificate may result in disciplinary action and/or fines by FICC.
Netting Members should review their GSD CCLF Participant Report® to understand their current activity level and projected Individual Total Amount.
FICC will request additional information and a written liquidity plan from each Netting Member to demonstrate incorporation of CCLF into their liquidity planning.
If a Netting Member's Total Individual Amount shows a significant increase, FICC may require an interim attestation of meeting the higher CCLF obligation.
Compliance with these requirements helps FICC ensure all Netting Members meet membership obligations and maintain sufficient resources for market stability in case of member default.

https://www.dtcc.com/-/media/Files/pdf/2023/7/10/MBS1245-23.pdf

Wut mean?

Clearing Members of MBSD are asked to submit an Officers' Certificate relating to CCLF obligations by September 20, 2023.
While not currently required under MBSD Rules, the certificate provides critical details on Clearing Members' ability to meet CCLF obligations when necessary.
The certificate requires Clearing Members to certify the incorporation of their Defined Capped Liquidity Amount (financial obligation under CCLF) into their liquidity plans.
Clearing Members should review their MBSD CCLF Participant Report to understand current activity levels and projected Defined Capped Liquidity Amount.
FICC will request additional information and a written liquidity plan from each Clearing Member to demonstrate incorporation of CCLF into their liquidity planning.
In case of a significant increase in Defined Capped Liquidity Amount, an interim attestation may be required to ensure meeting the higher CCLF obligation.
Prompt and thorough responses from Clearing Members assist FICC in verifying membership requirements and maintaining sufficient resources for market stability in the event of a member default.

Other posts on CCLF:

How does this relate to GameStop?

These requirements are part of the broader financial infrastructure that supports trading in securities, including GameStop shares.
Ensuring that all members can meet their obligations under the CCLF helps maintain market stability and confidence, which is crucial for all publicly traded companies, including GameStop.

TLDRS:

The Government Securities Division (GSD) and the Mortgage-Backed Securities Division (MBSD) are asking their members to submit an Officers' Certificate by September 20, 2023. This certificate is a confirmation that these members have included their financial obligations under the Capped Contingency Liquidity Facility (CCLF) in their liquidity plans.
The CCLF is a pool of resources that can be drawn upon if a member defaults, to ensure market stability. Each member's contribution to this pool is based on their activity level and is referred to as their Individual Total Amount (for GSD members) or Defined Capped Liquidity Amount (for MBSD members).
If a member's projected contribution shows a significant increase, they may need to provide an interim attestation confirming they can meet this higher obligation.
FICC will also request additional information and a written liquidity plan from each member to demonstrate how they've incorporated the CCLF into their liquidity planning.
Failure to submit the required certificate or meet these obligations could result in disciplinary action and/or fines by the Fixed Income Clearing Corporation (FICC).
These requirements are part of the broader financial infrastructure that supports trading in securities, including GameStop shares.
Ensuring that all members can meet their obligations under the CCLF helps maintain market stability and confidence, which is crucial for all publicly traded companies, including GameStop.