If a CCP has arranged for a committed liquidity source, then the provider should account for it in its own plans and demonstrate that it can meet its commitment. Of course, this liquidity is not free, nor should it be. Regulatory changes have forced banks to closely examine their liquidity planning and to internalize the costs of liquidity provision.
The costs of committed liquidity facilities will be passed on to clearing members. These costs are perhaps highest in clearing Treasury securities, where liquidity needs can be especially large. To meet its estimated needs, DTCC’s Fixed Income Clearing Corporation (FICC) is planning to institute a committed repo arrangement with its clearing members.