// definition
Collateral-in-Lieu
Protection within FICC’s Sponsored GC service
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Short definition
An FICC service in which the cash lender grants the clearing house a security interest in securities held in its tri-party account. Subject to conditions, this generally replaces the sponsor’s guarantee and certain margin or settlement payments. Haircuts and additional resources remain. The lien protects the cleared transaction; it does not finance a second repo.
risk atlas
Knowledge map
Intuition
A lien on existing collateral protects the obligations accepted for clearing.
Related analyses
Primary sources
- SEC, approval of the CIL serviceDecember 12, 2025 order: lien, replacement of protections and additional resources.
- FICC, August 26, 2026 GSD rulebookRule 3A and CIL annex: obligations and custodian instructions.